Exchange Rate Pass-Through into Import Prices

José Manuel Campa; Linda S. Goldberg

doi:10.1162/003465305775098189

Exchange Rate Pass-Through into Import Prices

José Manuel Campa^1,2,3,4; Linda S. Goldberg^2,5

¹ Center for Economic and Policy Research · ² National Bureau of Economic Research · ³ IESE Business School · ⁴ Universidad de Navarra · ⁵ Federal Reserve Bank of New York

The Review of Economics and Statistics 2005 open access

We provide cross-country and time series evidence on the extent of exchange rate pass-through into the import prices of 23 OECD countries. We find compelling evidence of partial pass-through in the short run, especially within manufacturing industries. Over the long run, producer-currency pricing is more prevalent for many types of imported goods. Countries with higher rates of exchange rate volatility have higher pass-through elasticities, although macroeconomic variables have played a minor role in the evolution of pass-through elasticities over time. Far more important for pass-through changes in these countries have been the dramatic shifts in the composition of country import bundles.

DOI: 10.1162/003465305775098189
Volume: 87 (4)
Pages: 679-690
Language: en
Export: BibTeX
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