This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The Responsiveness of Consumer Prices to Exchange Rates: A Synthesis of Some New Open Economy Macro Models

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Engel, Charles

Additional information is available for the following registered author(s):

Abstract

General equilibrium optimizing models with sticky nominal prices allow us to revisit questions about optimal monetary policy in open economies. If nominal prices are set in producers' currencies, appropriate monetary policy can reproduce the allocations under flexible prices. If nominal prices are set in consumers' currencies, stable nominal exchange rates may be desirable. In this case, a nominal exchange rate fixed at the PPP level can have desirable consequences for risk sharing, and nominal exchange rate flexibility cannot deliver optimal relative price changes. However, evidence shows that pass-through may be greater to import prices than to consumer prices. If prices are fixed for consumers, but importer-distributors face pass-through, then monetary policy makers face a trade-off that might require some control of nominal exchange rates, but not purely fixed rates. Copyright 2002 by Blackwell Publishers Ltd and The Victoria University of Manchester

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=manc&volume=70&issue=0&year=2002&part=null
File Format: text/html
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by University of Manchester in its journal Manchester School.

Volume (Year): 70 (2002)
Issue (Month): 0 (Supplement)
Pages: 1-15
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:manchs:v:70:y:2002:i:0:p:1-15

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1463-6786

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=1463-6786

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sushanta Mallick & Helena Marques, 2007. "Pass-through of Exchange Rate and Tariffs into Import Prices of India: Currency Depreciation versus Import Liberalisation," Working Papers 3, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. [Downloadable!]
    Other versions:
  2. David Bowman & Brian M. Doyle, 2003. "New Keynesian, open-economy models and their implications for monetary policy," International Finance Discussion Papers 762, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  3. Hafedh Bouakez & Nooman Rebei, 2005. "Has Exchange Rate Pass-Through Really Declined in Canada?," Working Papers 05-29, Bank of Canada. [Downloadable!]
  4. Alessandro Flamini, 2004. "Inflation Targeting and Exchange Rate Pass-Through," HEI Working Papers 04-2004, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
    Other versions:
  5. Jeannine Bailliu & Eiji Fujii, 2004. "Exchange Rate Pass-Through and the Inflation Environment in Industrialized Countries: An Empirical Investigation," Working Papers 04-21, Bank of Canada. [Downloadable!]
    Other versions:
  6. Alessandro Flamini, 2003. "CPI Inflation Targeting and Exchange Rate Pass-through," Macroeconomics 0306017, EconWPA. [Downloadable!]
Statistics
Access and download statistics

Did you know? No RePEc service, like IDEAS, charges for the use or the display of bibliographic data.

This page was last updated on 2009-11-22.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.