Is a more stable exchange rate associated with reduced exchange rate pass-through?
Holmes, M. (2007). Is a more stable exchange rate associated with reduced exchange rate pass-through? Economics Bulletin, 6(39), 1-12.
Permanent Research Commons link: http://hdl.handle.net/10289/1936
Pass-through from the nominal effective exchange rate to import prices is modelled within a regime-switching environment. Evidence suggests that exchange rate pass through can be characterised as regime-specific where the probability of switching between regimes is influenced by the extent of exchange rate volatility.
Economics Bulletin, USA
This article has been published in the journal: Economics Bulletin.
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