Brun-Aguerre, Raphael
[Verfasser:in]
;
Fuertes, Ana-Maria
[Sonstige Person, Familie und Körperschaft];
Greenwood-Nimmo, Matthew
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Journal of the Royal Statistical Society (A) - Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 25, 2016 erstellt
Beschreibung:
We analyze exchange rate pass-through into import prices for a large group of 33 emerging and developed economies from 1980Q1 to 2010Q4. Our error correction models permit asymmetric pass-through for currency appreciations and depreciations over three horizons of interest: on impact, in the short run and in the long run. We find that depreciations are typically passed-through more strongly than appreciations in the long-run, suggesting that exporters may exert a degree of long-run pricing power. This asymmetry is stronger in economies which are more import dependent but is moderated by freedom to trade and a positive output gap. Given that this pass-through asymmetry is welfare-reducing for consumers in the destination market, a key macroeconomic implication is that import-dependent economies, in particular, can benefit from trade liberalization