## 11. Macroeconomic and Political Developments in SSA

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### I. INTRODUCTION
- Research focus: degree and speed of exchange rate pass-through to domestic prices in sub-Saharan Africa (SSA).
- Approach:
  - Estimate degree and speed of exchange rate pass-through to domestic prices.
  - Identify factors underlying differences of pass-through across countries and periods.
  - Methodologies: panel setting (SSA as a region) and time series techniques (individual SSA countries).
- Structure: literature review (Section II), empirical analyses and main results (Section III), conclusions and policy recommendations (Section IV).

### II. LITERATURE REVIEW
- Conceptual frameworks:
  - Producer currency pricing (Obstfeld and Rogoff, 1995): producers fully pass exchange rate changes into sales prices (monopoly/imperfect competition).
  - Pricing to market (Krugman, 1987): in competitive markets producers reduce mark-ups to preserve market share.
  - Local currency pricing: sticky or rigid prices due to market imperfections or administrative constraints.
  - New open macroeconomics / new Keynesian models linking exchange rates and inflation.
- Empirical findings cited:
  - Developed countries: low and decreasing pass-through since the 1990s.
  - Emerging/developing countries: rapid downward trend in pass-through since the 1990s; determinants include income, trade openness, inflation environment, exchange rate variability.
  - Region-specific studies: Akofio-Sowah (2009) for 15 SSA countries; Mwase (2006) for Tanzania.
- Contribution: first study covering all SSA countries using panel and country-level VAR/VEC analyses.

### III. ANALYSIS

A. Stylized Facts
- Data coverage: NEER and CPI in SSA from 1985 to 2008; focus on pass-through to consumer prices.
- Key empirical patterns:
  - CPI change rates generally lower than nominal effective exchange rate (NEER) changes.
  - Median NEER depreciation around 35 percent in 1994 coincided with median CPI increase of about 9 percent.
  - Median NEER depreciation close to 5 percent in 1987, 1995, and between 2003 and 2007 associated with inflation about 3 percent in 1987 and 1995 and below 2 percent in 2003–2007.
  - 1994 large NEER and CPI changes reflect substantial devaluation of the CFA Franc.
- Exchange rate regime grouping:
  - “Flexible” (managed floating with no predetermined path; independently floating) and “fixed” (other conventional fixed peg arrangement).
- Regime differences:
  - Inflation following exchange rate changes appears higher in countries with fixed regimes than in flexible regimes.
- Time trend:
  - Pass-through appears to have declined since the mid-1990s.
  - Between 1985 and 1994 median NEER depreciated about 10 percent with inflation mostly above 2 percent; after mid-1990s depreciation faster while inflation mostly remained below 2 percent.
  - In flexible regimes average inflation about 5 percent before mid-1990s and 3 percent after.

B. Zero versus Complete Pass-Through (panel tests)
- Stationarity and cointegration:
  - Panel unit root tests: mixed results in levels for NEER and CPI; NEER and CPI stationary in first difference form (Table 1).
  - Panel cointegration tests (Pedroni residual-based): mixed results, no robust determination of cointegration (Table 2).
- Model strategy:
  - Panel VAR and panel VEC with lag lengths one and two; coefficient restriction tests on NEER coefficients.
  - Tested Ho: no pass-through (coefficients on NEER = 0) and Ho: complete pass-through (coefficients on NEER = 1) (Table 3).
- Findings:
  - Ho: No pass-through rejected for SSA region; individual coefficients on exchange rate variables highly statistically significant.
  - Ho: Complete pass-through rejected for SSA region; restriction to one rejected across model specifications.
  - Conclusion: incomplete pass-through in SSA; region-wide neither “local currency pricing” nor “producer currency pricing” holds fully.
  - Exchange rate depreciation associated with decreased export prices in foreign currency and strengthened price competitiveness.
- Asymmetry:
  - Pass-through more pronounced following depreciation/devaluation than appreciation (Table 4).
  - Depreciation dummy shows larger pass-through magnitudes during depreciation.
  - Appreciation has almost no impact on domestic prices; coefficients on NEER variables without depreciation dummy mostly statistically insignificant.

C. Estimates of Pass-Through Elasticities (country VARs)
- Method:
  - Country-specific VAR with quarterly CPI and NEER; lag length via Schwarz Bayesian information criteria; Cholesky decomposition; accumulated impulse responses normalized.
- Main elasticities:
  - Dynamic elasticities of pass-through average about 0.4 for SSA countries.
  - At quarter 4: average normalized impulse response 0.406 and median 0.416 (absolute terms).
  - About 50 percent of impacts occur within first quarter.
  - Quarter 1 average and median dynamic elasticities 0.19; country variation ranges from almost nil to 0.59.
  - Elasticities broadly stabilize after quarter 4.
- Selected country-level summaries (Table 5):
  - Fixed regimes: Quarter 1 average -0.228; Quarter 4 average -0.457; Quarter 8 average -0.485.
  - Flexible regimes: Quarter 1 average -0.131; Quarter 4 average -0.306; Quarter 8 average -0.304.
  - Overall averages: Quarter 1 -0.195; Quarter 4 -0.406; Quarter 8 -0.424.
  - Overall medians: Quarter 1 -0.194; Quarter 4 -0.416; Quarter 8 -0.405.
- Interpretation: country-level VARs confirm incomplete pass-through and are consistent with panel results and stylized facts.

D. Determinants of Pass-Through Elasticities
- Regime effect:
  - Elasticities lower in flexible regimes than fixed regimes (Table 6).
  - Normalized accumulated impulse responses about 35 percent lower in flexible regimes; differences statistically significant.
  - Interpretation: in fixed regimes agents consider exchange rate changes permanent and adjust prices rapidly; in flexible regimes agents consider changes partially temporary and delay price adjustments.
- Income per capita:
  - Higher income countries show lower pass-through, especially in flexible regimes (Figure 6).
  - Reported statistic: Correl. Coef.: 0.665** (preserve exact reported value).
  - Interpretation: larger domestic market and higher competition limit pricing power.
- Inflation environment:
  - High-inflation environments associated with higher pass-through in flexible regimes (Figure 7).
  - Reported statistic: Correl. Coef. in flexible regime: -0.631** (preserve exact reported value).
  - Explanation: under staggered price setting, if cost changes expected to persist, firms adjust prices more rapidly.
  - In fixed regimes correlation between inflation regime and pass-through not statistically significant.
- Monetary policy (broad money):
  - In flexible regimes, large increase in broad money associated with large pass-through elasticities (Figure 8).
  - Reported statistic: Correl. Coef. in flexible regime: -0.595* (preserve exact reported value).
  - In fixed regimes correlation not statistically significant.
  - Interpretation: perceived unstable monetary policy reduces firms’ willingness to absorb exchange rate effects.
- Fiscal policy:
  - Smaller basic primary fiscal deficit (or higher surplus) associated with lower pass-through in flexible regimes (Figure 9).
  - Reported statistic: Correl. Coef. in flexible regime: 0.789*** (preserve exact reported value).
  - Interpretation: large fiscal deficits increase perceived uncertainty and lead firms to pass exchange rate changes through to prices.
- Quality of macroeconomic policy (CPIA):
  - Higher CPIA associated with smaller pass-through elasticity, particularly in flexible regimes (Figure 10).
  - Reported statistic: Correl. Coef. in flexible regime: 0.530* (preserve exact reported value).
  - Interpretation: better macroeconomic management and institutions dampen pass-through by strengthening firms’ confidence and competition.

E. Shift in Pass-Through Elasticities (mid-1990s / 1997)
- Structural break:
  - Dynamic panel OLS and alternative specifications identify a distinct and statistically significant shift in mid-1990s, especially 1997 (Table 7).
  - Estimated reduction in pass-through elasticities about 50 percent across specifications.
- Coincident macro-political developments (Figure 11):
  - Median annual inflation for SSA fell to about 5 percent since mid-1990s from around 10 percent before mid-1990s.
  - Overall fiscal deficit (excluding grants) improved from about 10 percent of GDP before mid-1990s to about 7 percent of GDP since mid-1990s; stronger improvement since 2000s.
  - Acceleration in accumulation of foreign reserves since mid-1990s.
  - Trade openness: share of exports and imports to GDP surpassed 60 percent since mid-1990s and on steep upward trend.
  - Political freedom: indicator (median and average of polity score) indicates sustained improvement since mid-1990s.
- Interpretation: improved macroeconomic and political environment strengthened business confidence and competition, reducing firms’ pricing power and contributing to lower pass-through.

### IV. CONCLUSIONS AND POLICY IMPLICATIONS
- Main findings:
  - Exchange rate pass-through to domestic prices in SSA is partial and incomplete.
  - On average, a 10 percent depreciation of the local currency brings about a 4 percent increase of domestic prices.
  - Half of the increase occurs within the first quarter; full impact generally within four quarters.
  - The elasticity of pass-through decreased in SSA from the mid-1990s; magnitude declined by about 50 percent since mid-1990s.
- Determinants and policy implications:
  - Good macroeconomic policies are associated with lower pass-through:
    - Income growth
    - Low inflation
    - Prudent monetary policy
    - Sustainable fiscal balance
  - Improved policy and political environment (higher CPIA) dampens pass-through by strengthening firms’ confidence and competition.
  - For countries with flexible exchange rate regimes, improving overall macroeconomic policies is particularly important to address fears of exchange rate-induced inflation and to avoid large pass-through.
- Additional considerations:
  - Asymmetry: pass-through larger for depreciations than appreciations.
  - Other contributors to lower pass-through since mid-1990s may include declines in prices of imported goods due to higher productivity in producer countries, shifts of imports to lower-cost countries, and rising domestic distribution costs.

*Source: Author’s calculations and analysis in "11. Macroeconomic and Political Developments in SSA" (working paper content unit)._wp12141*

### References .............................................................................................................

### _wp12141 - References

### Tables
- 1. Panel Unit Root Test ...................................................................................................13
- 2. Panel Cointegration Test .............................................................................................13
- 3. Zero vs. Complete Pass-Through Tests (Panel AR-EC) .............................................14
- 4. Appreciation vs. Depreciation Pass-Through .............................................................14
- 5. Dynamic Pass-Through Elasticities ............................................................................15
- 6. Pass-Through Elasticities in Fixed vs. Flexible Regimes ...........................................16
- 7. Pass-Through Shift in 1997 .........................................................................................16

### Figures
- 1. NEER Developments in SSA (Quarterly) ...................................................................17
- 2. NEER Percentage Changes in SSA (Quarterly) .........................................................17
- 3. CPI Percentage Changes in SSA (Quarterly) ..............................................................17
- 4. NEER and CPI in Fixed Exchange Rate Regimes ......................................................18
- 5. NEER and CPI in Flexible Exchange Rate Regimes ..................................................18
- 6. Income and Pass-Through Elasticities ........................................................................19
- 7. Inflation Environment and Pass-Through Elasticities ................................................19
- 8. Broad Money and Pass-Through Elasticities ..............................................................20
- 9. Fiscal Balance and Pass-Through Elasticities .............................................................20
- 10. CPIA Macro and Pass-Through Elasticities ................................................................21

*Source: _wp12141 - References*

### 11. Macroeconomic and Political Developments in SSA .................................................21

### 11. Macroeconomic and Political Developments in SSA

### I. INTRODUCTION
- Research focus: degree and speed of exchange rate pass-through to domestic prices in sub-Saharan Africa (SSA).
- Approach:
  - Estimate degree and speed of exchange rate pass-through to domestic prices.
  - Identify factors underlying differences of pass-through across countries and periods.
  - Methodologies: panel setting (SSA as a region) and time series techniques (individual SSA countries).
- Structure: literature review (Section II), empirical analyses and main results (Section III), conclusions and policy recommendations (Section IV).

### II. LITERATURE REVIEW
- Key conceptual frameworks:
  - Producer currency pricing (Obstfeld and Rogoff, 1995): producers fully pass exchange rate changes into sales prices (monopoly/imperfect competition).
  - Pricing to market (Krugman, 1987): in competitive markets producers reduce mark-ups to preserve market share.
  - Local currency pricing: sticky or rigid prices due to market imperfections or administrative constraints.
  - New open macroeconomics / new Keynesian models used to link exchange rates and inflation.
- Empirical findings from prior studies:
  - Developed countries: low and decreasing pass-through since the 1990s (e.g., Choudhri et al., 2002; Taylor, 2000; Takhtamanova, 2008; Campa and Goldberg, 2002).
  - Emerging/developing countries: Frankel et al. (2005) find rapid downward trend in pass-through since the 1990s; determinants include income, trade openness, inflation environment, exchange rate variability.
  - Choudhri and Hakura (2001): strong correlation between pass-through and an inflationary environment.
  - Region-specific: Akofio-Sowah (2009) for 15 SSA countries; Mwase (2006) for Tanzania.
- Contribution of this study: first to examine exchange rate pass-through covering all SSA countries using panel and country-level VAR/VEC analyses.

### III. ANALYSIS
- Data coverage: developments in NEER and CPI in SSA from 1985 to 2008. Focus on pass-through to consumer prices.

A. Stylized Facts
- General patterns:
  - CPI change rates generally lower than nominal effective exchange rate (NEER) changes.
  - Median NEER depreciation around 35 percent in 1994 coincided with median CPI increase of about 9 percent.
  - Median NEER depreciation close to 5 percent in 1987, 1995, and between 2003 and 2007 associated with inflation about 3 percent in 1987 and 1995 and below 2 percent in 2003–2007.
  - 1994 large NEER and CPI changes reflect substantial devaluation of the CFA Franc.
- Exchange rate regime grouping:
  - Two groups: “flexible” (managed floating with no predetermined path; independently floating) and “fixed” (other conventional fixed peg arrangement).
- Regime differences:
  - Inflation following exchange rate changes appears higher in countries with fixed regimes than in flexible regimes.
- Time trend:
  - Pass-through appears to have declined since the mid-1990s: between 1985 and 1994 median NEER depreciated about 10 percent with inflation mostly above 2 percent; after mid-1990s depreciation faster while inflation mostly remained below 2 percent.
  - In flexible regimes average inflation about 5 percent before mid-1990s and 3 percent after.

B. Zero versus Complete Pass-Through (panel tests)
- Stationarity and cointegration:
  - Panel unit root tests: mixed results in levels for NEER and CPI, but NEER and CPI are stationary in first difference form (Table 1).
  - Panel cointegration tests (Pedroni residual-based): mixed results, no robust determination of cointegration (Table 2).
- Model strategy:
  - Employ panel VAR and panel VEC with lag lengths one and two; conduct coefficient restriction tests.
  - Test Ho: no pass-through (coefficients on NEER = 0) and Ho: complete pass-through (coefficients on NEER = 1) (Table 3).
- Results:
  - Ho: No pass-through rejected for SSA region. Individual coefficients on exchange rate variables highly statistically significant.
  - Ho: Complete pass-through rejected for SSA region. Restriction to one rejected across model specifications.
  - Conclusion: incomplete pass-through in SSA; “local currency pricing” and “producer currency pricing” hypotheses do not hold region-wide.
  - As a result, exchange rate depreciation is associated with decreased export prices in foreign currency and strengthened price competitiveness.
- Asymmetry:
  - Pass-through more pronounced following depreciation/devaluation than appreciation. Dummy variable for depreciation periods shows larger pass-through magnitudes during depreciation (Table 4).
  - Appreciation has almost no impact on domestic prices; coefficients on NEER variables without depreciation dummy mostly statistically insignificant.

C. Estimates of Pass-Through Elasticities (country VARs)
- Method:
  - Construct VAR for each country with quarterly CPI and NEER; lag length via Schwarz Bayesian information criteria; Cholesky decomposition; compute accumulated impulse responses; normalize accumulated CPI responses to NEER shocks by CPI responses to own shocks.
- Main elasticities:
  - Dynamic elasticities of pass-through average about 0.4 for SSA countries.
  - At quarter 4: average normalized impulse response 0.406 and median 0.416 (absolute terms).
  - About 50 percent of impacts occur within first quarter.
  - Quarter 1 average and median dynamic elasticities 0.19; country variation ranges from almost nil to 0.59.
  - Elasticities broadly stabilize after quarter 4.
- Country-level results (selected summary from Table 5):
  - Fixed regimes: Quarter 1 average -0.228; Quarter 4 average -0.457; Quarter 8 average -0.485.
  - Flexible regimes: Quarter 1 average -0.131; Quarter 4 average -0.306; Quarter 8 average -0.304.
  - Overall averages: Quarter 1 -0.195; Quarter 4 -0.406; Quarter 8 -0.424.
  - Overall medians: Quarter 1 -0.194; Quarter 4 -0.416; Quarter 8 -0.405.
- Interpretation: country-level VARs confirm incomplete pass-through and are consistent with panel results and stylized facts.

D. Determinants of Pass-Through Elasticities
- Regime effect:
  - Elasticities lower in flexible regimes than fixed regimes (Table 6). Normalized accumulated impulse responses about 35 percent lower in flexible regimes. Differences statistically significant.
  - Interpretation: in fixed regimes agents consider exchange rate changes permanent and adjust prices rapidly; in flexible regimes agents consider changes partially temporary and delay price adjustments.
- Income per capita:
  - Higher income countries show lower pass-through, especially in flexible regimes (Figure 6). Correlation in flexible regime: Correl. Coef.: 0.665** (note: sign and interpretation preserved as in source).
  - Higher income interpreted as larger domestic market and higher competition, limiting pricing power.
- Inflation environment:
  - High-inflation environments associated with higher pass-through in flexible regimes (Figure 7). Correl. Coef. in flexible regime: -0.631** (preserve exact reported coefficient).
  - Explanation: under staggered price setting, if cost changes expected to persist, firms adjust prices more rapidly.
  - In fixed regimes correlation between inflation regime and pass-through not statistically significant.
- Monetary policy (broad money):
  - In flexible regimes, large increase in broad money associated with large pass-through elasticities (Figure 8). Correl. Coef. in flexible regime: -0.595* (preserve exact).
  - In fixed regimes correlation not statistically significant.
  - Interpretation: perceived unstable monetary policy reduces firms’ willingness to absorb exchange rate effects.
- Fiscal policy:
  - Smaller basic primary fiscal deficit (or higher surplus) associated with lower pass-through in flexible regimes (Figure 9). Correl. Coef. in flexible regime: 0.789*** (preserve exact).
  - Large fiscal deficits increase perceived uncertainty and lead firms to pass exchange rate changes through to prices.
- Quality of macroeconomic policy (CPIA):
  - Higher CPIA associated with smaller pass-through elasticity, particularly in flexible regimes (Figure 10). Correl. Coef. in flexible regime: 0.530* (preserve exact).
  - CPIA assesses quality of policy and institutions; macroeconomic management score relevant.

E. Shift in Pass-Through Elasticities (mid-1990s / 1997)
- Structural break:
  - Dynamic panel OLS and alternative specifications identify a distinct and statistically significant shift in mid-1990s, especially 1997 (Table 7).
  - Estimated reduction in pass-through elasticities about 50 percent across specifications.
- Coincident macro-political developments (Figure 11):
  - Median annual inflation for SSA fell to about 5 percent since mid-1990s from around 10 percent before mid-1990s.
  - Overall fiscal deficit (excluding grants) improved from about 10 percent of GDP before mid-1990s to about 7 percent of GDP since mid-1990s; stronger improvement since 2000s.
  - Acceleration in accumulation of foreign reserves since mid-1990s.
  - Trade openness: share of exports and imports to GDP surpassed 60 percent since mid-1990s and on steep upward trend.
  - Political freedom: indicator (median and average of polity score) indicates sustained improvement since mid-1990s.
- Interpretation: improved macroeconomic and political environment strengthened business confidence and competition, reducing firms’ pricing power and contributing to lower pass-through.

### IV. CONCLUSIONS AND POLICY IMPLICATIONS
- Main findings:
  - Exchange rate pass-through to domestic prices in SSA is partial and incomplete.
  - On average, a 10 percent depreciation of the local currency brings about a 4 percent increase of domestic prices.
  - Half of the increase occurs within the first quarter; full impact generally within four quarters.
  - The elasticity of pass-through decreased in SSA from the mid-1990s; magnitude declined by about 50 percent since mid-1990s.
- Determinants and policy implications:
  - Good macroeconomic policies (income growth, low inflation, prudent monetary policy, sustainable fiscal balance) are associated with lower pass-through.
  - Improved policy and political environment (higher CPIA) dampens pass-through by strengthening firms’ confidence and competition.
  - To address fears of exchange rate-induced inflation and avoid large pass-through, SSA policymakers should improve overall macroeconomic policies—particularly important for countries with flexible exchange rate regimes.
- Additional considerations:
  - Asymmetry: pass-through larger for depreciations than appreciations.
  - Possible other contributors to lower pass-through since mid-1990s include declines in prices of imported goods due to higher productivity in producer countries, shifts of imports to lower-cost countries, and rising domestic distribution costs.

*Source: Author’s calculations and analysis in "11. Macroeconomic and Political Developments in SSA" (working paper content unit)._wp12141*

### REFERENCES

### _wp12141 - REFERENCES

### References
- Akofio-Sowah, Naa Anyeley, 2009, “Is There a Link Between Exchange Rate Pass-Through and the Monetary Regime: Evidence from Sub-Saharan Africa and Latin America,” International Advances in Economic Research, Vol. 15, pp. 296–309.  
- Campa, Jose M., and Linda S. Goldberg, 2002, “Exchange Rate Pass-Through into Import Prices: A Macro or Micro Phenomenon?” Staff Reports No. 149 (New York: Federal Reserve Bank of New York).  
- Choi, Woon Gyu, and David Cook, 2008, “New Keynesian Exchange Rate Pass-Through” Working Paper No. 08/213, International Monetary Fund.  
- Choudhri, Ehsan U., Hamid Faruqee, and Dalia S. Hakura (2002) “Explaining the Exchange Rate Pass-Through in Different Prices,” Working Paper No. 02/224, International Monetary Fund.  
- Choudhri, Ehsan U., and Dalia S. Hakura, 2001, “Exchange Rate Pass-Through to Domestic Prices: Does Inflationary Environment Matter?” Working Paper No. 01/194, International Monetary Fund.  
- Dornbusch, Rudiger, 1987, “Exchange Rate and Prices,” American Economic Review, Vol. 77.  
- Faruqee, Hamid, 2006, “Exchange Rate Pass-Through in the Euro Area,” IMF Staff Papers, Vol. 53. No. 1.  
- Fisher, Eric, 1989, “A model of Exchange Rate Pass-Through,” Journal of International Economics, Vol. 26.  
- Frankel, Jeffrey, David Parsley, and Shang-Jin Wei, 2005, “Slow Pass-Through Around the World: A New Import for Developing Countries?” Working Paper No. 11199, National Bureau of Economic Research.  
- Habermeier, Karl, Annamaria Kokenyne, Romain Veyrune, and Harald Anderson, 2009, “Revised System for the Classification of Exchange Rate Arrangements” Working Paper No. 09/211, International Monetary Fund.  
- Ho, Corrinne, and Robert McCauley, 2003, “Living with Flexible Exchange Rates: Issues and Recent Experience in Inflation Targeting Emerging Market Economies,” Working Paper 130, Bank for International Settlements, Basel.  
- International Monetary Fund, Annual Report on Exchange Arrangements and Exchange Restrictions, 2009, www.imfbookstore.org

- 23

- Krugman, Paul, 1987, “Pricing to Market when the Exchange Rate Changes,” in Sven Arndt and J. David Richardson, eds., Real Financial Linkages Among Open Economies, MIT Press: Cambridge, pp. 49–70.  
- Krugman, Paul, 1989, “The Delinking of Exchange Rates from Reality,” Chapter 2 in Exchange Rate Instability, MIT Press.  
- Mwase, Nkunde, 2006, “An Empirical Investigation of the Exchange Rate Pass-Through to Inflation in Tanzania,” Working Paper No. 06/150, International Monetary Fund.  
- Obstfeld, Maurice and Kenneth Rogoff, 1995, “Exchange Rate Dynamics Redux,” Journal of Political Economy, Vol. 103, pp. 624–660.  
- Pedroni, Peter, 1999, “Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors,” Oxford Bulletin of Economics and Statistics, Vol. 61, pp. 653–70.  
- Pedroni, Peter, 2004, “Panel Cointegration; Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis,” Econometric Theory, Vol. 20, pp. 597–625.  
- Steel, Douglas, and Alan King, 2004 “Exchange Rate Pass-Through: The Role of Regime Changes,” International Review of Applied Economics, Vol. 18, No. 3, pp. 301–322.  
- Taylor, John, 2000, “Low Inflation, Pass-Through, and Pricing Power of Firms,” European Economic Review, Vol. 44, pp. 1389–1408.  
- Takhtamanova, Yelena F., 2008, “Understanding Changes in Exchange Rate Pass-Through”, Federal Reserve Bank of San Francisco.  
- Zorzi, Michele Ca’, Elke Hahn, and Marcelo Sánchez, 2007, “Exchange Rate Pass-Through in Emerging Markets”, Working Paper Series No. 739, European Central Bank.

*Source: _wp12141 - REFERENCES*

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