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Euro Area Policies: Selected Issues

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  • International Monetary Fund

Abstract

An important aim of this paper is to take shifts in the long-term anchor in the empirical specifications. The study examines exchange-rate pass-through and external adjustment in the euro area. The impact on third-country trade and investment is also discussed. A better understanding of the economic behavior underlying limited pass-through is an important consideration for investigating the implications of currency fluctuations and the pattern of external adjustment. The impulse-response patterns suggest a high degree of local currency pricing in import prices and producer currency pricing in export prices.

Suggested Citation

  • International Monetary Fund, 2003. "Euro Area Policies: Selected Issues," IMF Staff Country Reports 2003/298, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2003/298
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=16880
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