This paper examines the presence of asymmetric behavior in exchange rate pass-through (ERPT) to CPI inflation in 12 …

This paper examines the presence of asymmetric behavior in exchange rate pass-through (ERPT) to CPI inflation in 12 …

rates of inflation if the two assets are highly substitutable under the baseline scenario. After the benchmark economy is … implies that, higher currency substitution is welfare enhancing for high inflation rates but not for moderate and low … inflation rates. In other words, currency substitution is not necessarily welfare enhancing. …

The impact of changes in exchange rate on inflation is an issue of extreme importance for nations with a history of … high inflation. While there have been significant studies on industrial and advanced economies, little analysis has been … fundamentals on ERPT, and finds monetary policy stability, inflation rate and trade openness to have a positive impact on pass …

have decreased substantially from 2001 onwards, which coincides with the adoption of an inflation targeting regime by Banco …

is a potentially important source of inflation in Ghana. Using variance decomposition analyses, it is found that monetary … policy implication of these findings is that policies that aim at lowering inflation must focus on monetary and exchange rate …

Currency substitution affects the mapping between social welfare and inflation by altering the underlying money demand … the actual pattern of currency substitution across varying rates of inflation and enables the study of an additional … inflation rate, which turns out to be 44% under baseline calibration, below which currency substitution decreases welfare and …