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The pass-through effect: a twofold analysis

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  • Forte, Antonio

Abstract

In this paper I analyse the pass-through effect in four big areas using different approaches. On the one hand, I inspect this issue comparing the REER (real effective exchange rate) with the WARP (weighted average relative price) in the US, the UK, Japan and the Euro area. On the other hand, I try to support the findings of the first part with a double econometric analysis: I employ single equation and Var approaches in order to provide wide and robust results. The global conclusion is that in the major economies of the world the pass-through effect has been very light from January 1999 onward and that, especially in the Euro area, this result is linked with the firms behaviour.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16527.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:16527

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Keywords: Pass-Through effect; WARP; exchange rate;

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Cited by:
  1. Forte, Antonio, 2009. "The European Central Bank, the Federal Reserve and the Bank of England: is the Taylor Rule an useful benchmark for the last decade?," MPRA Paper 18309, University Library of Munich, Germany.

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