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Exchange Rate Pass-Through and Relative Prices: An Industry-Level Empirical Investigation

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  • Prasad Bhattacharya

    ()

  • Cem A. Karayalcin

    ()

  • Dimitrios D. Thomakos

    ()

Abstract

In this paper we explore the extent of exchange rate pass-through for the USA, UK and Japan using a post-Bretton Woods industry-level dataset. We investigate how different channels of exchange rate pass-through affect domestic and import prices. Our analysis is suggestive of two channels of transmission and we find considerable variation in the extent of pass-through across industries and countries.

Suggested Citation

  • Prasad Bhattacharya & Cem A. Karayalcin & Dimitrios D. Thomakos, 2006. "Exchange Rate Pass-Through and Relative Prices: An Industry-Level Empirical Investigation," Economics Series 2006_17, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  • Handle: RePEc:dkn:econwp:eco_2006_17
    as

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    File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2006_17eco.pdf
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    References listed on IDEAS

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    Cited by:

    1. Daniels, Joseph P. & VanHoose, David D., 2013. "Exchange-rate pass through, openness, and the sacrifice ratio," Journal of International Money and Finance, Elsevier, vol. 36(C), pages 131-150.

    More about this item

    Keywords

    Exchange Rates; Pass-Through Effect; Expenditure-Switching;

    JEL classification:

    • F0 - International Economics - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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