The Adjustment of Global External Imbalances: Does Partial Exchange Rate Pass-Through to Trade Prices Matter?

The Adjustment of Global External Balances: Does Partial Exchange Rate Pass-Through to Trade Prices Matter?

This paper assesses whether partial exchange rate pass-through to trade prices has important implications for the prospective adjustment of global external imbalances. To address this question, we develop and estimate an open-economy DGE model in which pass-through is incomplete due to the presence of local currency pricing, distribution services, and a variable demand elasticity that leads to ...

Exchange Rate Pass-Through To Domestic Prices In Iran (1990-2006)

Estimating Exchange Rate Pass-Through on Producer Prices in Main Sectors of Iranian Economy

Exchange rate changes could impact on prices. Whether exchange rate pass through to prices is complete or incomplete is an interesting question in analyzing impacts of exchange rate policy. An important aspect of exchange rate pass through is in producer price index and in its sub-indices. Our aim is to analyze the effects of exchange rate changes on producer sub-indices. To do that we have use...

Pass-Through Effects of Global Food Prices on Consumer Prices in Iran

T he objective of this study is using the Markov Switching Vector Autoregressive method and regime dependent impulse response functions to measure the pass-through of world food prices to consumer price index in Iran from 1990 to 2013. With respect to information criteria and the log-likelihood ratio statistic, MSIA(2)-VAR(1) model has a better fit to data than other models. The magn...

Exchange Rate Pass-Through on Non-Oil Trade Balance in Iran

This article investigates the relationship between the exchange rate and non-oil trade balance in Iran between 1981 and 2014. A structural vector auto-regression model is built. The results indicated that the increasing effect of the real effective exchange rate worsens the non-oil trade balance in the short term. In contrast, the increasing effect of the real effective exchange rate improves t...