Buy Foreign While You Can Cheap Dollar and Exchange Rate Pass-Through
Fecha de publicacion: 20-07-2005
Autor: Eduardo J. J. Ganapolsky, Diego Vilán
Formato: PDF
No.Páginas: 39
Resumen del Contenido: We present evidence on the degree of exchange rate pass-through (ERPT) in the US for a wide variety of import categories over the period Dec.1993-Dec.2004. In general, we find low ERPT at the monthly frequency. The ERPT elasticity of total imports’ prices is 18%, on average, but with substantial variation across imports categories. We do not find evidence of asymmetric ERPT during depreciation versus appreciation episodes. As in previous studies, we find a downward trend
in ERPT elasticities for the main import categories over time. However, when we look at a more disaggregated level we observe that in many cases there was a reversion towards higher ERPT during 2004.
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