Pass-through of exchange rates and import prices to domestic inflation in some industrialized economies
By: Jonathan McCarthy.
Contributors: Federal Reserve Bank of New York.
Series: Staff reports ;; no. 111; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 111.
Publisher: Federal Reserve Bank of New York
Published: 2000
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Foreign exchange rates.; Inflation (Finance); Imports -- Prices.
Description: "This paper examines the impact of exchange rates and import prices on the domestic producer price index and consumer price index in selected industrialized economies.  The empirical model is a vector autoregression incorporating a distribution chain of pricing.  When the model is estimated over the post-Bretton Woods era, impulse responses indicate that exchange rates have a modest effect on domestic price inflation while import prices have a stronger effect.  Pass-through is larger in countries with a larger import share and more persistent exchange rates and import prices.  Over 1996-98, these external factors have had a sizable disinflationary effect in many of the countries, but not in the United States.  Estimating the model using post-1982 data has little effect on these conclusions"--Federal Reserve Bank of New York web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 2/18/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.