The pass-through of exchange rate changes to import prices
Ketelsen, Uwe; Kortelainen, Mika (29.10.1996)
Numero
26/1996Julkaisija
Suomen Pankki
1996
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-20140807520Tiivistelmä
In this paper, we analyze the empirical relevance of exchange rate pass-through for Finland, Sweden and Denmark during the period 1980-1994.Further, we attemp to determine if there has been a structural change in the pass-through relationship in 1990s.We find that about half the changes in exchange rates and world prices are passed through to import prices within one year, and three-quarters of such changes are passed through to import prices in two years.Moreover, there are no major differences among countries.Parameter constancy tests indicate the possibility of a structural change where the pass-through has slowed in recent years.Possible explanations of this are that the exchange rate regime has changed and competition has increased. Key words: exchange rate pass-through, import prices, structural change
Julkaisuhuomautus
Corrected version.