Pass-through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies

Front Cover
Bank for International Settlements, Monetary and Economic Department, 1999 - Exchange rate pass-through - 37 pages
"This paper examines the impact of exchange rates and import prices on the domestic producer price index and consumer price index in selected industrialized economies. The empirical model is a vector autoregression incorporating a distribution chain of pricing. When the model is estimated over the post-Bretton Woods era, impulse responses indicate that exchange rates have a modest effect on domestic price inflation while import prices have a stronger effect. Pass-through is larger in countries with a larger import share and more persistent exchange rates and import prices. Over 1996-98, these external factors have had a sizable disinflationary effect in many of the countries, but not in the United States. Estimating the model using post-1982 data has little effect on these conclusions"--Federal Reserve Bank of New York web site.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Influences on passthrough
2
Results
8
Recent influence of extemal factors 7 Has the influence of extemal factors changed?
26

1 other sections not shown

Common terms and phrases

Bibliographic information