05755oam 22012614 450 991082619700332120200520144314.01-4755-5240-81-4755-8061-4(CKB)2670000000278882(EBL)1606986(SSID)ssj0000952643(PQKBManifestationID)11603817(PQKBTitleCode)TC0000952643(PQKBWorkID)10902373(PQKB)10116979(Au-PeEL)EBL1606986(CaPaEBR)ebr10627103(OCoLC)870245021(IMF)WPIEE2012226(IMF)WPIEA2012226(MiAaPQ)EBC1606986(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 Hakura1st ed.Washington, 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-throughPricesCurrenciesimfCurrencyimfDeflationimfExchange rate pass-throughimfExchange ratesimfExport pricesimfExportsimfForeign ExchangeimfForeign exchangeimfGovernment and the Monetary SystemimfImport pricesimfImportsimfInflationimfInternational Policy Coordination and TransmissionimfMacroeconomicsimfMonetary economicsimfMonetary PolicyimfMonetary SystemsimfMoney and Monetary PolicyimfMoneyimfOpen Economy MacroeconomicsimfPayment SystemsimfPrice LevelimfPricesimfRegimesimfStandardsimfUnited StatesimfExchange rate pass-through.Prices.CurrenciesCurrencyDeflationExchange rate pass-throughExchange ratesExport pricesExportsForeign ExchangeForeign exchangeGovernment and the Monetary SystemImport pricesImportsInflationInternational Policy Coordination and TransmissionMacroeconomicsMonetary economicsMonetary PolicyMonetary SystemsMoney and Monetary PolicyMoneyOpen Economy MacroeconomicsPayment SystemsPrice LevelPricesRegimesStandards658.3894Choudhri Ehsan1768889Hakura Dalia1643717DcWaIMFBOOK9910826197003321The Exchange Rate Pass -Through to Import and Export Prices4241436UNINA