Beladi, Hamid; Chakrabarti, Avik; Marjit, Sugata - In: Journal of Mathematical Economics 46 (2010) 4, pp. 493-504
The extent of exchange rate pass-through has been playing an increasingly pivotal role in the transmission of exchange rate shocks and adequate policy responses. We develop a model of exchange rate pass-through that allows the stochastic process of exchange rate to include the lagged values of...