High exchange-rate volatility and low pass-through

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dc.contributor.author CORSETTI, Giancarlo
dc.contributor.author DEDOLA, Luca
dc.contributor.author LEDUC, Sylvain
dc.date.accessioned 2008-10-29T13:39:34Z
dc.date.available 2008-10-29T13:39:34Z
dc.date.issued 2008
dc.identifier.citation Journal of Monetary Economics, 2008, 55, 6, 1113-1128. en
dc.identifier.uri http://hdl.handle.net/1814/9652
dc.description.abstract Two 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.iso en en
dc.relation.ispartof Journal of Monetary Economics
dc.title High exchange-rate volatility and low pass-through en
dc.type Article en
dc.neeo.contributor CORSETTI|Giancarlo|aut|EUI70002
dc.neeo.contributor DEDOLA|Luca|aut|
dc.neeo.contributor LEDUC|Sylvain|aut|
dc.identifier.volume 55
dc.identifier.startpage 1113
dc.identifier.endpage 1128

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