IDEAS home Printed from
   My bibliography  Save this article

The Impact of Inflationary Environment on Exchange Rate Pass-Through to the import Price Index in Iran


  • Asgharpur , Hossein

    () (Associate Professor of Economics, University of Tabriz)

  • Kazerooni , Alireza

    () (Professor of Economics, University of Tabriz)

  • Mirani, Nina

    () (Ph.D. Student in Economics, University of Tabriz)


Exchange rate as one of the key variables of the economy plays an important role in determining the import price index. Therefore, knowledge of the empirical relationship between exchange rate and import price index, which is known in economic literature as Exchange Rate Pass-Through is important and can help economic officials on how choose their economic policies. Empirical studies conducted during the past decade show that the Exchange Rate Pass-Through on the import price index is affected by many factors such as inflation. According to the fact that during the last three decades, Iran's economy has experienced relatively high and persistent rate of inflation, in this study by using time series data over the period of 1971- 2012, examined the role of inflation in exchange rate pass-through to the import price index. Results indicate an incomplete pass-through of exchange rates to the import price index. The results also indicate that the exchange rate pass- through to import price index increases in high and intermediate levels of inflation, however, the pass-through in the high inflation level is lower than intermediate inflation.

Suggested Citation

  • Asgharpur , Hossein & Kazerooni , Alireza & Mirani, Nina, 2015. "The Impact of Inflationary Environment on Exchange Rate Pass-Through to the import Price Index in Iran," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(2), pages 155-178, September.
  • Handle: RePEc:ris:qjatoe:0016

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    Exchange Rate Pass-Through; Import Price Index; Inflationary Environment.;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F30 - International Economics - - International Finance - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0016. 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: (Sakineh Sojoodi). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.