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The Role of Exchange Rate Movements for Prices in the Euro Area

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Author Info
Paul Gaggl () (University of California, Davis, Department of Economics)

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Abstract

This study provides new evidence on the degree of exchange rate pass-through (ERPT) within the euro area after the launch of the euro up to the end of 2007. ERPT to import, producer, and consumer prices is estimated within a simple vector auto regression (VAR) framework. ERPT in the euro area is found to be broadly consistent with earlier studies in that it exhibits the following properties: ERPT (a) is incomplete; (b) decreases along the distribution chain; (c) might have slightly decreased; and (d) varies significantly across individual EMU member countries. JEL classification: F31, F40

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Publisher Info
Article provided by Oesterreichische Nationalbank (Austrian Central Bank) in its journal Monetary Policy and the Economy.

Volume (Year): (2009)
Issue (Month): 2 (August 2009)
Pages: 83-103
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Handle: RePEc:onb:oenbmp:y:2009:i:2:b:4

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Related research
Keywords: foreign exchange; open economy macroeconomics;

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This page was last updated on 2009-11-16.

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