Exchange rate pass-through in the Caucasus and Central Asia

This article estimates the extent and speed of exchange rate pass-through (ERPT) in seven Caucasus Central Asia (CCA) countries using monthly data over January 1995–May 2020 period. The estimations are performed local projections method. We find that average CCA is about 10% on impact 25% after 12 months. There no evidence asymmetric ERPT with respect to size sign changes. broadly unchanged fixed versus floating regimes. has been a downward shift aftermath global financial crisis as have entered relatively low inflation environment. could be used by monetary authorities for projections. absence nonlinearities regime suggests transition from regimes region not likely impose additional inflationary costs.