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The Exchange Rate Pass - Through to Import and Export Prices : The Role of Nominal Rigidities and Currency Choice

Choudhri, Ehsan U. - 2012

Using both regression- and VAR-based estimates, the paper finds that the exchange rate pass-through to import prices for a large number of countries is incomplete and larger than the pass-through to export prices. Previous studies have reported similar results, which give rise to the puzzle that...

Persistent link: https://www.econbiz.de/10013098580

State-Dependent Exchange Rate Pass-Through

Carrière-Swallow, Yan; Firat, Melih; Furceri, Davide; … - 2023

We estimate how the rate of pass-through from the exchange rate to domestic prices varies across states of the economy and depending 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...

Persistent link: https://www.econbiz.de/10014354590

Exchange Rates and Trade : A Disconnect?

Leigh, Daniel - 2017

We examine the stability and strength of the relationship between exchange rates and trade over time using three alternative approaches, mitigating the endogeneity of the relation. We find that both exchange rate pass-through and the price elasticity of trade volumes are largely stable over...

Persistent link: https://www.econbiz.de/10012956490

Global Trade and the Dollar

Gopinath, Gita - 2018

.S. dollar is a key predictor of rest-of-world aggregate trade volume and consumer/producer price inflation. A 1 percent U ….S. dollar appreciation against all other currencies in the world predicts a 0.6-0.8 percent decline within a year in the volume … of total trade between countries in the rest of the world, controlling for the global business cycle. 4) Using a novel …

Persistent link: https://www.econbiz.de/10012928628

A Network Model of Multilaterally Equilibrium Exchange Rates

Kireev, Aleksej P. - 2016

This paper proposes a network model of multilaterally equilibrium exchange rates. The model introduces a topological component into the exchange rate analysis, consistently taking into account simultaneous higher-order interactions among all currencies. The paper defines the currency demand...

Persistent link: https://www.econbiz.de/10012977844

Global Value Chains and the Exchange Rate Elasticity of Exports

Ahmed Hannan, Swarnali - 2016

This paper analyzes how the formation of Global Value Chains (GVCs) has affected the exchange rate elasticity of exports. Using a panel framework covering 46 countries over the period 1996-2012, we first find some suggestive evidence that the elasticity of real manufacturing exports to the Real...

Persistent link: https://www.econbiz.de/10012999740

Real Effective Exchange Rate and the Constant Elasticity of Substitution Assumption

Vamvakidis, Athanasios - 2021

The real effective exchange rate is an aggregation of several bilateral real exchange rates with respect to other countries. The aggregation is usually done under the assumption of constant elasticity of substitution (CES) between products from different countries. We investigate the validity of...

Persistent link: https://www.econbiz.de/10013212031

Demand for Value Added and Value-Added Exchange Rates

Bems, Rudolfs - 2015

We examine the role of cross-border input linkages in governing how international relative price changes influence demand for domestic value added. We define a novel value-added real effective exchange rate (REER), which aggregates bilateral value-added price changes, and link this REER to...

Persistent link: https://www.econbiz.de/10013013815

Global Value Chains and External Adjustment : Do Exchange Rates Still Matter?

Adler, Gustavo - 2020

The paper explores how international integration through global value chains shapes the working of exchange rates to induce external adjustment both in the short and medium run. The analysis indicates that greater integration into international value chains reduces the exchange rate elasticity...

Persistent link: https://www.econbiz.de/10012843296

Why are Countries' Asset Portfolios Exposed to Nominal Exchange Rates?

Barrett, Philip - 2018

Most countries hold large gross asset positions, lending in domestic currency and borrowingin foreign. Thus, their balance sheets are exposed to nominal exchange rates. We argue thatwhen asset markets are incomplete, nominal exchange rate exposure allows countries topartially insure against...

Persistent link: https://www.econbiz.de/10012929919