05710oam 22012374 450 991078648500332120230801225342.01-4755-5240-81-4755-8061-4(CKB)2670000000278882(EBL)1606986(SSID)ssj0000952643(PQKBManifestationID)11603817(PQKBTitleCode)TC0000952643(PQKBWorkID)10902373(PQKB)10116979(MiAaPQ)EBC1606986(Au-PeEL)EBL1606986(CaPaEBR)ebr10627103(OCoLC)870245021(IMF)WPIEE2012226(IMF)WPIEA2012226(EXLCZ)99267000000027888220020129d2012 uf 0engur|n|---|||||txtccrThe Exchange Rate Pass -Through to Import and Export Prices : The Role of Nominal Rigidities and Currency Choice /Ehsan Choudhri, Dalia HakuraWashington, D.C. :International Monetary Fund,2012.1 online resource (35 p.)IMF Working PapersIMF working paper ;WP/12/226"September 2012."1-4755-8980-8 1-4755-1023-3 Includes bibliographical references.Cover; Contents; I. Introduction; II. Empirical Evidence; III. The Model; A. Basic Setup; B. Key Relations; IV. Quantitative Analysis; A. Key Determinants of the Pass-Through to Trade Prices; B. Currency of Invoicing and the Pass-Through; V. Concluding Remarks; References; Tables; 1. OLS Regressions: Impact of Exchange Rate Changes on Trade Prices, 1979-2010; 2. VAR: First Quarter Trade Price Response to a One Percent Change in the Exchange Rate, 1979-2010; 3. Pass-Through Elasticities for Different Shocks4. Wage-Price Stickiness, Exchange Rate Persistence, Inflation Reaction and the Pass-Through5. Stochastic Simulations; 6. Invoicing Currency Shares and the Pass-Through; Figures; 1. Regression and VAR Estimates of the Pass-Through; 2. Impulse Response Functions; 3. PCP Shares and the Pass-Through; Appendix Tables; 1. VAR: First Quarter Trade Price Response to a One Percent Change in the Exchange Rate 1985-1997; 2. VAR: First Quarter Trade Price Response to a One Percent Change in the Exchange Rate 1998-2010Using both regression- and VAR-based estimates, the paper finds that the exchange rate pass-through to import prices for a large number of countries is incomplete and larger than the pass-through to export prices. Previous studies have reported similar results, which give rise to the puzzle that while local currency pricing is needed to account for incomplete import price pass-through, it would not imply a lower export price pass-through. Recent explanations of this puzzle have emphasized markup adjustment in response to exchange rate changes. This paper suggests an alternative explanation based on the presence of both producer and local currency pricing. Using a dynamic general equilibrium model, the paper shows that a mix of producer and local currency pricing can explain the pass-through evidence even with a constant markup. The model can also explain the observed exchange rate and inflation variability as well as the fact that the regression and VAR estimates tend to be similar.IMF Working Papers; Working Paper ;No. 2012/226Exchange rate pass-throughPricesForeign ExchangeimfMacroeconomicsimfMoney and Monetary PolicyimfPrice LevelimfInflationimfDeflationimfInternational Policy Coordination and TransmissionimfMonetary PolicyimfOpen Economy MacroeconomicsimfMonetary SystemsimfStandardsimfRegimesimfGovernment and the Monetary SystemimfPayment SystemsimfCurrencyimfForeign exchangeimfMonetary economicsimfExport pricesimfImport pricesimfExchange ratesimfExchange rate pass-throughimfCurrenciesimfPricesimfMoneyimfExportsimfImportsimfUnited StatesimfExchange rate pass-through.Prices.Foreign ExchangeMacroeconomicsMoney and Monetary PolicyPrice LevelInflationDeflationInternational Policy Coordination and TransmissionMonetary PolicyOpen Economy MacroeconomicsMonetary SystemsStandardsRegimesGovernment and the Monetary SystemPayment SystemsCurrencyForeign exchangeMonetary economicsExport pricesImport pricesExchange ratesExchange rate pass-throughCurrenciesPricesMoneyExportsImportsChoudhri Ehsan1546594Hakura Dalia1472693DcWaIMFBOOK9910786485003321The Exchange Rate Pass -Through to Import and Export Prices3858237UNINA