This paper studies how a rise in China's share of U.S. imports could lower pass-through of exchange rates to U ….S. import prices. We develop a theoretical model with variable markups showing that the presence of exports from a country with … exporters from other countries to lower markups in response to a U.S. depreciation, thereby moderating the pass-through to …

differences in markups, costs, and import quota constraints. Local currency price stability can be attributed either to the … higher prices in Italy is the existence of a strong bias for domestic brands that generates high markups for the domestic …

of the profit function and, hence, also affect frequency. In an environment with variable mark-ups or variable marginal … frequency, contrary to the data. Lastly, we calibrate a dynamic menu-cost model and show that variable mark-ups chosen to match …

with variable mark-ups and imported intermediate inputs and evaluate the ability of these models to match pass …