Exchange rate pass-through in Korea and Thailand: Trends and determinants
AbstractAn important but age-old transmission channel of global factors into domestic prices is via exchange rate movements. This paper examines the extent and evolution of exchange rate pass-through (ERPT) into Korea's and Thailand's consumer and import prices at the aggregate level for the period over the last two decades. We find that ERPT appears to be consistently higher for Thailand compared to Korea; while for both nations ERPT of their respective bilateral rates with respect to the US dollar is higher than with respect to the Japanese yen. The paper also investigates if and how ERPT has changed over time, especially during and after the currency crisis period of 1997-1998, as well as its macroeconomic determinants.
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Bibliographic InfoArticle provided by Elsevier in its journal Japan and the World Economy.
Volume (Year): 21 (2009)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/505557
Exchange rate pass-though (ERPT) Exchange rate volatility Inflation Korea Thailand;
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