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

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Author Info
Prasad Bhattacharya ()
Cem A. Karayalcin ()
Dimitrios D. Thomakos ()

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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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Publisher 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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Related research
Keywords: Exchange Rates; Pass-Through Effect; Expenditure-Switching;

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Find related papers by JEL classification:
F0 - International Economics - - General
F31 - International Economics - - International Finance - - - Foreign Exchange
F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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