Auclert, Adrien; Rognlie, Matthew; Souchier, Martin; … - 2021
spending. When the sum of import and export elasticities is one, this channel is offset by a larger Keynesian multiplier … exchange rates: the rise in import prices from a depreciation lowers households’ real incomes, and leads them to cut back on … transmission and creates a dilemma for policymakers facing capital outflows. Delayed import price pass-through weakens the real …