exchange rates and international relative prices and quantities. This paper examines the ability of extensions of existing open … economy models to account for exchange rates, international relative prices, and international trade quantities. The …

reset-price inflation to exchange rate shocks exhibits significant persistence. Individual import prices, conditional on … imports, like that for consumer prices, exhibits little persistence. Competitor prices affect firm pricing, and exchange rate … pass-through into import prices is greater in response to trade-weighted, as opposed to bilateral, exchange rate shocks. We …

We study a newly constructed panel data set of relative prices of a large number of consumer goods among 31 European …