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| Mark J. Holmes |
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| ''Is a more stable exchange rate associated with reduced exchange rate pass-through?'' |
| ( 2007, Vol. 6 No.39 ) |
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| Pass-through from the nominal effective exchange rate to import prices is modelled within a regime-switching environment. Evidence suggests that exchange rate pass through can be characterised as regime-specific where the probability of switching between regimes is influenced by the extent of exchange rate volatility. |
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| Keywords: |
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
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| Manuscript Received : Sep 17 2007 | | Manuscript Accepted : Oct 09 2007 |
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