Exchange Rate Pass-Through in the Euro Area : The Role of Asymmetric Pricing Behavior /

Exchange rate pass-through in a set of euro area prices along the pricing chain is examined. Using a vector autoregression (VAR) approach, the empirics analyze the joint time-series behavior of the euro exchange rate and a system of euro-area prices in response to an exchange rate shock. The impulse...

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Bibliografiske detaljer
Hovedforfatter: Faruqee, Hamid
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2004.
Serier:IMF Working Papers; Working Paper ; No. 2004/014
Online adgang:Full text available on IMF
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245 1 0 |a Exchange Rate Pass-Through in the Euro Area :   |b The Role of Asymmetric Pricing Behavior /  |c Hamid Faruqee. 
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300 |a 1 online resource (27 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Exchange rate pass-through in a set of euro area prices along the pricing chain is examined. Using a vector autoregression (VAR) approach, the empirics analyze the joint time-series behavior of the euro exchange rate and a system of euro-area prices in response to an exchange rate shock. The impulse-response functions from the VAR estimates are used to identify-in a 'new open economy macroeconomics model'-those key behavioral parameters that best replicate the pattern of exchange rate pass-through in the euro area. Area-wide prices are found to display incomplete pass-through, consistent with euro currency-pricing and pricing-to-market behavior. The results are compared to those for the other major industrial economies, and suggest that, as with the United States, "expenditure-switching" effects on the current account still operate but are generally small. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2004/014 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2004/014/001.2004.issue-014-en.xml  |z IMF e-Library