IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Relationship between the Law of One Price and Exchange Rate Pass-through

Listed author(s):
  • Menon, Jayant


    (Asian Development Bank Institute, Asian Development Bank)

The volatility in exchange rates has brought to the forefront the relationship between exchange rate movements and the prices of traded goods. A vast body of literature examining this important issue exists separately under two general headings, namely tests of the “law of one price” and “exchange rate pass-through” analysis. So far, there has not been any attempt to understand the relationship between the two. This is a serious omission, since it leaves a number of important questions unanswered. This paper clarifies these issues by deriving two fundamental propositions on the inter-relationships between exchange rate pass-through and the law of one price. It also draws out the implications of these inter-relationships for the study of exchange rates and prices, and for policy.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Camera di Commercio Industria Artigianato Agricoltura di Genova in its journal Economia Internazionale / International Economics.

Volume (Year): 48 (1995)
Issue (Month): 4 ()
Pages: 551-568

in new window

Handle: RePEc:ris:ecoint:0389
Contact details of provider: Postal:
Via Garibaldi 4, 16124 Genova, Italy

Phone: +39 010 27041
Fax: +39 010 2704222
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0389. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Procopio)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.