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Import price dynamics in major advanced economies and heterogeneity in exchange rate pass-through

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  • Dées, Stéphane
  • Burgert, Matthias
  • Parent, Nicolas

Abstract

This paper aims at showing heterogeneity in the degree of exchange rate pass-through to import prices in major advanced economies at three different levels: 1) across destination markets; 2) across types of exporters (distinguishing developed economy from emerging economy exporters); and 3) over time. Based on monthly data over the period 1991-2007, the results show first that large destination markets exhibit the lowest degree of pass-through. The degree of pass-through for goods imported from emerging economies is also significantly lower than for those from developed economies. Regarding the evolution over time, no clear change in pricing behaviours can be identified and particular events, like large exchange rates depreciations during the Asian crisis, seem to influence the degree of pass-through related to imports from emerging economies. JEL Classification: E31, F3, F41

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 0933.

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Date of creation: Sep 2008
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Handle: RePEc:ecb:ecbwps:20080933

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Related research

Keywords: Exchange Rate Pass-Through; Import price modeling; Pricing to Market;

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Citations

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Cited by:
  1. Kerstin Stahn, 2011. "Changes in Import Pricing Behaviour: Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(4), pages 522-545, August.
  2. Olivier de Bandt & Tovonony Razafindrabe, 2014. "Exchange rate pass-through to import prices in the Euro-area: A multi-currency investigation," Economie Internationale, CEPII research center, issue 138, pages 63–77.
  3. Stahn, Kerstin, 2009. "Changes in import pricing behaviour: the case of Germany," Discussion Paper Series 1: Economic Studies 2009,14, Deutsche Bundesbank, Research Centre.

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