The Real Exchange Rate and Prices of Traded Goods in OECD Countries (Kieler Studien - Kiel Studies)
Edition: 1 edition
Publisher: Springer
Published: September 10, 2003
Language: eng
Format: Hardcover
Number of pages: 217
ISBN-13: 9783540004301
Subjects: Monetary economics; Foreign exchange rates; Economics - General; Business & Economics; Business / Economics / Finance; Prices; Business/Economics; OECD countries; General; Economics - Microeconomics; Exports & Imports; Business & Economics / Economics / International; Business & Economics / Microeconomics; Business & Economics : Exports & Imports; Exchange Rate Pass-through; International Competitiveness; Law of one Price; Medical : General; Price Setting Behavior; International trade
First sentence: Globalization has many features.
Description: "The book deals with real exchange rate changes resulting either from shifts in nominal exchange rates or increases in costs that are asymmetric across countries. It is shown how exchange rates and local production costs are passed through into import prices.

It is found both analytically and empirically for OECD countries that pass-through is incomplete and that the degree of pass-through depends on country and industry characteristics such as production share, market structure, product attributes, and demand features. The book also investigates the implications of exchange rate changes for profits, investment, and the entry/exit decisions of firms.

The main finding is that even though the exchange rate changes have a limited impact on price competitiveness, they do matter for location and investment decisions."--Jacket.