Exchange Rate Pass Through to Prices in Maldives

 
Author/Editor: Masha, Iyabo ; Park, Chanho
 
Publication Date: May 01, 2012
 
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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: This study examines the degree of exchange rate pass through (EPRT) into producer and consumer prices in Maldives. ERPT to consumer prices is first estimated using a nonparametric approach. A recursive vector autoregression is then used to model both consumer and producer price changes. The nonparametric estimation indicates that ERPT to consumer prices is very high, both in absolute terms and relative to other countries. The dynamics of ERPT as derived from the empirical estimation indicate that ERPT to consumer and producer prices is significant but not complete, and that the impact of exchange rate changes persists into the second year.
 
Series: Working Paper No. 12/126
Subject(s): Consumer prices | Economic models | Exchange rates | Producer prices | Maldives

Author's Keyword(s): Inflation | Exchange Rate | Maldives
 
English
Publication Date: May 01, 2012
Format: Paper
Stock No: WPIEA2012126 Pages: 24
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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