It has been suggested that recent findings of a decline in aggregate exchange rate pass-through are due to changes in demand elasticities within the U.S., or to changes in competitive (supply) conditions in for those imports. An alternate explanation is that the commodity composition of U.S....

This paper studies the effects of exchange rate uncertainty on prices in an intertemporal context. That is, we focus on the trade-offs between current and expected future volatility. We show that uncertainty matters even to risk neutral firms due to its effects on bid/ask spreads in foreign...

This paper points out an important difference between the effects of anticipated future exchange rate shocks on domestic and import prices when reputation effects exist. The distinction is relevant to discussions of the temporal stability of pass-through

This paper presents estimates of exchange rate pass-through derived from a panel of very disaggregated import unit-values to Hong Kong. The estimation approach builds on that utilized by Knetter (1989, 1993) to study export pricing and pricing to market. The three dimensional data set examined...

This paper examines the nature of the pass-through of exchange rate shocks on prices along the distribution chain, and estimates its short and long-term path. It uses monthly data from a small open economy and a smooth transition auto-regressive vector model estimated by Bayesian methods. The...

This study is aimed at estimating the Exchange Rate Pass Through (ERPT) to import prices of for a sample of 5 South Asian Countries (Bangladesh, India, Iran, Pakistan, Srilanka). Using profit maximizing approach of firms, in lines of Bailliu and Fujii (2004) theoretical specification, this paper...

This paper examines the effect of overall and sector-specific productivity shocks on the real exchange rate in small open economies. A dynamic stochastic small open economy model shows that productivity shocks impact the real exchange rate mostly through changes in the relative price of...

This paper investigates several basic characteristics of food and agricultural prices across commodities, countries and time. The first part of the paper uses consumer prices across commodities and countries from the International Comparisons Program and finds that food has a distinct tendency...

This paper contrasts real exchange rate (RER) measures based on different deflators (CPI, GDP deflator, and ULC) and discusses potential implications for the link-or lack thereof-between RER and external balance. We begin by documenting patterns in the evolution of different measures of RERs,...

Using US micro price data at the city level, we provide evidence that both the volatility and the persistence of deviations from the law of one price (LOP) are rising in the distance between US cities. A standard, two-city, stochastic equilibrium model with trade costs can predict the...