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Fear of Inflation: Exchange Rate Pass-Through in East Asia

Author

Listed:
  • Sammo Kang

    (Korea Institute of Finance)

  • Yunjong Wang

    (SK Research Institute)

Abstract

The purpose of this paper is to empirically examine the pass-through of exchange rates for import prices and consumer prices in a few selected East Asian countries - Japan, Korea, Singapore and Thailand. According to our empirical results, first, exchange rates had a greater impact on import prices than on consumer prices in all four countries. Second, the impact of exchange rates on import and consumer prices increased in Korea and Thailand after the 1997 currency crisis.

Suggested Citation

  • Sammo Kang & Yunjong Wang, 2004. "Fear of Inflation: Exchange Rate Pass-Through in East Asia," Korean Economic Review, Korean Economic Association, vol. 20, pages 193-211.
  • Handle: RePEc:kea:keappr:ker-20040630-20-1-10
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    More about this item

    Keywords

    Consumer Prices; East Asia; Fear of Inflation; Import Prices; Pass-through of Exchange Rates;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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