Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies

By Jonathan McCarthy. 2007

687 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/99e28cccb7ab842c84f54ea798bed06fb2d0078a

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

Citations in the corpus

Inflation and exchange rate pass-through (2019, background): “…pass-through to consumer prices goes through various channels, from direct effects through energy and other commodity prices, to indirect effects through import prices, wage formation, and profit markups (Bacchetta and van Wincoop 2003; Burstein and Gopinath 2014; Ito and Sato 2008; McCarthy 2007).”
Openness, Imperfect Exchange Rate Pass-Through and Monetary Policy (2002, neutral): “Other recent evidence on imperfect exchange rate pass-through can be found in McCarthy (1999) .”
Exchange Rate Changes and Inflation in Post-Crisis Asian Economies: VAR Analysis of the Exchange Rate Pass-Through (2006, positive): “First, we include the oil price and the output gap in a VAR model following McCarthy (2000) and Hahn (2003).”
Exchange Rate Pass-Through into Import Prices: A Macro or Micro Phenomenon? (2002, neutral): “The γ ’s are background information for the monetary policy debate discussed in Taylor (2000) and provided in studies such as McCarthy (2000).”
Exchange rates and the prices of manufacturing products imported into the United States (2002, background): “McCarthy (2000) and Gagnon and Ihrig (2001) provide evidence that exchangerate fluctuations during the 1990s exerted a smaller role on consumer price inflation in several industrialized countries.”
Review of Monetary Policy in South Africa Since 1994 (2007, methodology): “The reduced form residuals from the VAR are orthogonalized using a Cholesky decomposition to identify the structural shocks, where the variables are in the order given above (see also, McCarthy, 2000).”
Exchange Rate Pass-Through and Inflation: A Nonlinear Time Series Analysis (2013, methodology): “…has rarely 1See, for example, Goldberg and Knetter (1997), Otani, Shiratsuka and Shirota (2003), Campa and Goldberg (2005), Sekine (2006) and McCarthy (2007). been used in the studies of ERPT.2 We employ several U-shaped transition functions in the STAR model to consider alternative forms…”
Exchange Rate Pass-Through: Evidence Based on Vector Autoregression with Sign Restrictions (2011, neutral): “For example, Campa and Goldberg (2005) and Choudhri and Hakura (2006) report a positive correlation, while McCarthy (2007) and Wei and Parsley (1995) find a negative one.”
Exchange-Rate Pass-Through in the G-7 Countries (2006, neutral): “It should be noted that a cross-country study by McCarthy (2000), using a vector autoregressive model, finds that exchange rate shocks have modest effects on consumer-price inflation (including effects through import prices).”
A new look at pass-through (2008, background): “will lead to expenditure switching by firms and still generate conclusions in line with earlier Obstfeld Rogoff models such as Obstfeld and Rogoff (1995 or 2000).(8) 3.2 Open Economy Long Run Restrictions Models While previous pass-through studies have not focused on underlying shocks, there are a n”
Why do Consumer Prices React Less than Import Prices to Exchange Rates (2002, background): “The former is close to zero [e.g., see McCarthy (1999) ], while the median estimate of the latter is about 50 percent.”