The European Integration and the Exchange Rate Pass-through: An Empirical Study for five Eurozone Countries vis-à-vis the United States
نویسندگان
چکیده
In this paper we investigate the empirical pass-through of the nominal exchange rates to the consumer price indexes (CPIs) for five Eurozone countries vis-à-vis the United States. There are significant structure changes in these countries during the European integration. The Eurozone CPIs have been insulated from the exchange rate shocks since that integration; on the other hand, we find that the pass-through to the U.S. CPI has not changed a great deal. In addition, the Eurozone CPI variances explained by the exchange rate shocks are higher before the European integration. The reduced pass-through to the European CPIs has a policy implication for the European Central Bank (ECB), which has a major concern for price stability. JEL classification: F41; F42
منابع مشابه
The Impact of Exchange Rate Volatility and Inflationary Regimes on the Consumer Price Index in Organization of Islamic Countries (Panel FMOLS Co-integration Approach)
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