Monetary Policy Credibility and Exchange Rate Pass-Through /

A long-standing conjecture in macroeconomics is that recent declines in exchange rate pass-through are in part due to improved monetary policy performance. In a large sample of emerging and advanced economies, we find evidence of a strong link between exchange rate pass-through to consumer prices an...

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Bibliographic Details
Main Author: Carriere-Swallow, Yan
Other Authors: Gruss, Bertrand, Magud, Nicolas, Valencia, Fabian
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2016.
Series:IMF Working Papers; Working Paper ; No. 2016/240
Online Access:Full text available on IMF
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245 1 0 |a Monetary Policy Credibility and Exchange Rate Pass-Through /  |c Yan Carriere-Swallow, Bertrand Gruss, Nicolas Magud, Fabian Valencia. 
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490 1 |a IMF Working Papers 
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520 3 |a A long-standing conjecture in macroeconomics is that recent declines in exchange rate pass-through are in part due to improved monetary policy performance. In a large sample of emerging and advanced economies, we find evidence of a strong link between exchange rate pass-through to consumer prices and the monetary policy regime's performance in delivering price stability. Using input-output tables, we decompose exchange rate pass-through to consumer prices into a component that reflects the adjustment of imported goods at the border, and another that captures the response of all other prices. We find that price stability and central bank credibility have reduced the second component. 
538 |a Mode of access: Internet 
700 1 |a Gruss, Bertrand. 
700 1 |a Magud, Nicolas. 
700 1 |a Valencia, Fabian. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2016/240 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2016/240/001.2016.issue-240-en.xml  |z IMF e-Library