State-Dependent Exchange Rate Pass-Through
Authors
Carrière-Swallow, Yan
Firat, Melih
Furceri, Davide
Jiménez, Daniel
Editor
Publication date
2023-05-18
Document language
eng
Publisher
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Journal Title
Journal ISSN
Volume Title
Abstract
We estimate how the rate of pass-through from the exchange rate to domestic prices varies across states of the economy and depends on the shocks that drive fluctuations in the exchange rate. We confirm several results from the literature and uncover new facts. Drawing on the experience of a large sample of advanced and emerging market economies over the past 30 years, we document that exchange rate pass-through is significantly larger during periods of high inflation and elevated uncertainty. Using a novel identification strategy, we also show that pass-through is higher when exchange rate fluctuations are driven by U.S. monetary policy.
Description
Códigos JEL
E31 - Price Level; Inflation; Deflation, E52 - Monetary Policy, F31 - Foreign Exchange, F44 - International Business Cycles
item.page.subjectjelspa
Keywords
Exchange rate, Pass Through, Inflation
Keywords
Groups
informalidad
