Using disaggregated quarterly trade data for Switzerland over 2004-2011, we study exchange rate pass through (ERPT) into imported intermediate input prices and its role in the price setting behaviour of exporters. We explicitly include disaggregated proxies for imported input prices in our...

The empirical trade literature has traditionally studied exchange rate pass-through (ERPT) into imported consumer goods prices but not into imported input prices. It also implicitly assumed full ERPT into imported input prices in studying their role in exchange rate adjustments of exports, which...