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dc.contributor.authorCORSETTI, Giancarlo
dc.contributor.authorDEDOLA, Luca
dc.contributor.authorLEDUC, Sylvain
dc.date.accessioned2008-10-29T13:39:34Z
dc.date.available2008-10-29T13:39:34Z
dc.date.issued2008
dc.identifier.citationJournal of Monetary Economics, 2008, 55, 6, 1113-1128.en
dc.identifier.urihttp://hdl.handle.net/1814/9652
dc.description.abstractTwo specifications of an open-economy model are shown to generate high exchange-rate volatility and low exchange-rate pass-through (ERPT). In the model, price discrimination causes ERPT to be incomplete in both the short and the long run. In the short run, a small amount of nominal rigidities is enough to reduce ERPT sharply; still, exchange-rate depreciation worsens the terms of trade, consistent with the evidence. Possible biases from omitted variables and measurement error in the ERPT empirical literature (due to data limitations) are investigated using model-generated time series. Estimates of ERPT coefficients can be quite different from true parameters, and are sensitive to the shocks driving the economies. Estimates can nonetheless detect key structural features of the models.en
dc.language.isoenen
dc.relation.ispartofJournal of Monetary Economics
dc.titleHigh exchange-rate volatility and low pass-throughen
dc.typeArticleen
dc.neeo.contributorCORSETTI|Giancarlo|aut|EUI70002
dc.neeo.contributorDEDOLA|Luca|aut|
dc.neeo.contributorLEDUC|Sylvain|aut|
dc.identifier.volume55
dc.identifier.startpage1113
dc.identifier.endpage1128


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