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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 …
Persistent link: https://www.econbiz.de/10008598706
We analyze retail prices and at-the-dock (import) prices of specific items in the Bureau of Labor Statistics' (BLS) CPI …
Persistent link: https://www.econbiz.de/10004967529
We study a newly constructed panel data set of relative prices of a large number of consumer goods among 31 European …
Persistent link: https://www.econbiz.de/10008475888
We study the purchasing power parity (PPP) puzzle in a multi-sector, two-country, sticky- price model. Across sectors, firms differ in the extent of price stickiness, in accordance with recent microeconomic evidence on price setting in various countries. Combined with local currency pricing,...
Persistent link: https://www.econbiz.de/10008489226
relative prices in microeconomic data is much faster. This paper finds that adjustment to the law of one price in disaggregated … qualitatively distinct process, working through adjustment in local-currency goods prices. These distinct adjustment dynamics appear … nesting aggregate and disaggregated relative prices permits identification of distinct macroeconomic and good-specific shocks …
Persistent link: https://www.econbiz.de/10008504593
Persistent link: https://www.econbiz.de/10005346814
Sticky price monetary models of exchange rates, while reasonable theoretically, have been disappointing empirically. Out-of-sample predictions have been little or no better than those from a naive model of no change. The most likely reason is that shocks to the market's expectation of the future...
Persistent link: https://www.econbiz.de/10005352307
Using self-exciting threshold autoregressive models, we explore the validity of the law of one price (LOOP) for sixteen sectors in nine European countries. We and strong evidence of nonlinear mean reversion in deviations from the LOOP and highlight the importance of modelling the real exchange...
Persistent link: https://www.econbiz.de/10005352844
Persistent link: https://www.econbiz.de/10005361358
with sticky goods prices. If prices are held fixed for at least one year, risk aversion is high, and preferences are …
Persistent link: https://www.econbiz.de/10005367679