18 results with keyword: 'entry dynamics and decline exchange rate pass through'
This markup decline reflects that an increase in the number of foreign exporters drives up wages and production costs in the foreign econ- omy, inducing a real home
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This paper explores the hypothesis that high volatility of real and nominal exchange rates may be due to the fact that local currency pricing eliminates the pass-through from changes
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The degree of exchange rate pass-through to imported inputs prices will affect the marginal cost of domestic goods and, in turn, the price and the demand for domestic
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In that literature, an increase in competition in the domestic market always increases the sensitivity of domestic prices to exchange rate movements.. In our context,
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As such, in the case of complete pass-through, the nominal exchange rate has a very large effect on the home country CPI compared to the effects of the price of home-produced goods..
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The results with the exception of money supply show that exchange rate volatility along with other model variables does not Granger cause inflation in the short-run during
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automobile sales and inventories by country of origin, we …nd strong evidence that exchange rate movements a¤ect inventory-sales ratios, consistent with changing markups. We
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Regarding the hypothesis that ERPT is higher for emerging than for developed economies we find mixed results: it seems to be the case for consumer prices, but not for producer
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It is noteworthy that the impact of the pass-through tends to be stronger, the more the central bank cares about CPI-in‡ation stabilization (strict in‡ation- targeting, SIT)
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Using micro data on US import prices, we show that the pass- through rate following USD movements is up to four times as large as the pass-through rate following TPC movements and
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If exchange rate mean reverts, LCP and PCP firms will choose different prices conditional on adjustment: Each firm in response to an exchange rate shock will adjust its prices by
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When we estimate pass-through conditional on price adjustment, as in equation ( 2 ), we find that exchange rate pass-through into local currency prices of goods that are priced
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We estimate equations (11) and (12) of the paper using unit values, export volumes, and the real exchange rate de…ned at a quarterly frequency, and replace the product-year …xed
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In fact, these quite modest of pass-through on producer prices clearly reflect the Dutch Disease (Codren and Neary (1982) and Bruno and Sachs (1982)) effect on Algeria economy
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This experience reveals that the adjustment mechanisms of exchange rate fluctuations on the current account imbalance do not work smoothly, contrary to views prevalent at that time.4
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As noted previously, this feature tends to markedly damp pass-through from exchange rates to consumer prices in line with the empirical evidence I have discussed--both
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This corroborate previous studies such as Frankel, Parsley and Wei (2012), Campa and Goldberg (2005), and Thameur and Daboussi (2014) where it has been established that the notion
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Hakura (2001), “a low exchange rate pass-through is thought to provide greater freedom for pursuing an independent monetary policy and to make it easier to
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