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Exchange rate pass-through and relative prices: An industry-level empirical investigation

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  • Bhattacharya, Prasad S.
  • Karayalcin, Cem A.
  • Thomakos, Dimitrios D.

Abstract

In this paper we explore the extent of exchange rate pass-through for the USA, UK and Japan using a post-Bretton Woods industry-level dataset. We investigate how different channels of exchange rate pass-through affect domestic and import prices. Our analysis is suggestive of two channels of transmission and we find considerable variation in the extent of pass-through across industries and countries.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Money and Finance.

Volume (Year): 27 (2008)
Issue (Month): 7 (November)
Pages: 1135-1160

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Handle: RePEc:eee:jimfin:v:27:y:2008:i:7:p:1135-1160

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Web page: http://www.elsevier.com/locate/inca/30443

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Keywords: Exchange rates Pass-through effect Expenditure-switching;

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References

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Cited by:
  1. Bhattacharya, Prasad S. & Thomakos, Dimitrios D., 2008. "Forecasting industry-level CPI and PPI inflation: Does exchange rate pass-through matter?," International Journal of Forecasting, Elsevier, vol. 24(1), pages 134-150.
  2. Daniels, Joseph P. & VanHoose, David D., 2013. "Exchange-rate pass through, openness, and the sacrifice ratio," Journal of International Money and Finance, Elsevier, vol. 36(C), pages 131-150.

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