Exchange Rate Pass-Through in Romania

Author/Editor:

Nikolay Gueorguiev

Publication Date:

June 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Quantifying the size and speed of the exchange rate pass-through to prices is important for formulating monetary policy decisions in Romania. Using a recursive VAR model, this paper finds that (i) the pass-through is large and relatively fast, accounting for a sizable fraction of inflation; (ii) the pass-through from the exchange rate against the U.S. dollar is larger, if not faster, than the one from alternative exchange rate benchmarks; and (iii) the pass-through to producer prices seems to have moderated recently, while the same cannot be said yet for consumer prices.

Series:

Working Paper No. 03/130

Subject:

English

Publication Date:

June 1, 2003

ISBN/ISSN:

9781451855210/1018-5941

Stock No:

WPIEA1302003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

30

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