García-Solanes, José; Torrejón-Flores, Fernando - In: International Review of Economics & Finance 19 (2010) 1, pp. 36-45
This paper develops a structural general equilibrium model to analyse the pass-through from devaluation to producer and consumer prices in Emerging Market Economies (EMEs). Simulation analysis shows that balance-sheet effects created by capital market imperfections and the home bias shrink the...