State-Dependent Exchange Rate Pass-Through

by Davide Furceri, Mr. Yan Carriere-Swallow, Melih Firat, Daniel Jimenez

We estimate how the rate of pass-through from the exchange rate to domestic prices varies across states of the economy and depending on the shocks that drive fluctuations in the exchange rate. We confirm several results from the literature and uncover new facts. Drawing on the experience of a large sample of advanced and emerging market economies over the past 30 years, we document that exchange rate pass-through significantly larger during periods of high inflation and elevated uncertainty. Usi

ISBN: 9798400240461

83 pages

Published: 2023-04-28

Publisher: International Monetary Fund

View this book on ARC Library · Browse more books