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This paper examines which mechanisms are likely to dampen the price pressures in the wake of exchange rate movements. In addition to nominal frictions frequently used in sticky-price models, it jointly introduces two features that have hitherto been considered separately in the existing...
Persistent link: https://www.econbiz.de/10011610169
This paper investigates the impact of market structure on the joint determination of exchange rate pass-through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market - that is, exporting firms and...
Persistent link: https://www.econbiz.de/10011304162
We analyze export price adjustment of Swiss manufacturing firms using a novel data set of matched export, import, and … domestic prices. After a large, unexpected, and permanent appreciation of the Swiss franc, export prices set in domestic … currency fell less than export prices set in foreign currency. This difference prevails if we control for variation in firms …
Persistent link: https://www.econbiz.de/10012112506
The closed and open economy literatures both work on evaluating the role of real rigidities, but in parallel. This paper brings the two literatures together. We use international price data and exchange rate shocks to evaluate the importance of real rigidities in price setting. We show that,...
Persistent link: https://www.econbiz.de/10008663357
This paper studies the effect of exchange rate pass-through on inflation in Tunisia over the period 2001-2009. The authors' objective is to track inflation regimes for the Tunisian economy and to forecast its determinants. Using a Markov-switching approach, the authors identified two main...
Persistent link: https://www.econbiz.de/10009578287
This paper investigates the impact of exchange rate movements on the conduct of monetary policy in Australia, Canada, New Zealand and the United Kingdom. We develop and estimate a structural general equilibrium two-sector model with sticky prices and wages and limited exchange rate pass-through....
Persistent link: https://www.econbiz.de/10003749237
A large literature estimates the exchange rate pass-through to prices (ERPT) using reducedform approaches; whose results are an important input for analyses at Central Banks. We study the usefulness of these empirical measures for monetary policy analysis and decision making, emphasizing two...
Persistent link: https://www.econbiz.de/10011988237
This paper examines volatility spillovers from changes in the size of the balance sheets of the Federal Reserve (FED) and European Central Bank (ECB) to emerging market economies (EMEs) from 2003 to 2014. We find that EME bond markets are most susceptible to positive volatility spillovers from...
Persistent link: https://www.econbiz.de/10011636172