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Exchange Rate Pass-Through and Relative Prices: An Industry-Level Empirical Investigation

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  • Prasad Bhattacharya

    ()

  • Cem A. Karayalcin

    ()

  • Dimitrios D. Thomakos

    ()

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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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2006_17eco.pdf
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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2006_17.

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Date of creation: 27 Nov 2006
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Handle: RePEc:dkn:econwp:eco_2006_17

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Keywords: Exchange Rates; Pass-Through Effect; Expenditure-Switching;

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References

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Cited by:
  1. Daniels, Joseph P & VanHoose, David D, 2010. "Exchange-Rate Pass Through, Openness, and the Sacrifice Ratio," Working Papers and Research, Marquette University, Center for Global and Economic Studies and Department of Economics 2010-05, Marquette University, Center for Global and Economic Studies and Department of Economics.
  2. 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, Elsevier, vol. 24(1), pages 134-150.

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