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Exchange Rates and Import Prices in Switzerland

Listed author(s):
  • Nils Herger
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    For the case of Switzerland, this paper endeavours to estimate the empirical extend with which exchange rates are "passed-through" onto import prices. For data covering the 1999 to 2010 period, the results suggest that (i) on aggregate, the exchange rate pass-through is highly incomplete with an elasticity of around 0.2 and (ii) major differences arise between industries. In particular, relatively large pass-through effects can be observed for commodities and other standardised products such as paper, timber, or minerals whilst for automobiles and textiles, the impact of the exchange rate upon import prices is negligible and statistically far from significant.

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    File URL: http://www.sjes.ch/papers/2012-III-1.pdf
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    Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

    Volume (Year): 148 (2012)
    Issue (Month): III (September)
    Pages: 381-407

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    Handle: RePEc:ses:arsjes:2012-iii-1
    Contact details of provider: Postal:
    c/o SNB/BNS, Börsenstrasse 15, PO Box 2800, CH-8022 Zürich

    Phone: +41 58 631 32 34
    Web page: http://www.sjes.ch
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    19. Choudhri, Ehsan U. & Hakura, Dalia S., 2006. "Exchange rate pass-through to domestic prices: Does the inflationary environment matter?," Journal of International Money and Finance, Elsevier, vol. 25(4), pages 614-639, June.
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