IMF Staff Country Reports

Euro Area Policies: Selected Issues

Publication Date:

September 16, 2003

Electronic Access:

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Summary:

An important aim of this paper is to take shifts in the long-term anchor in the empirical specifications. The study examines exchange-rate pass-through and external adjustment in the euro area. The impact on third-country trade and investment is also discussed. A better understanding of the economic behavior underlying limited pass-through is an important consideration for investigating the implications of currency fluctuations and the pattern of external adjustment. The impulse-response patterns suggest a high degree of local currency pricing in import prices and producer currency pricing in export prices.

Series:

Country Report No. 2003/298

Subject:

Aging Expenditure Inflation Labor Pension reform Pension spending Pensions Population and demographics Prices