{
  "title": "Exchange Rate Pass-Through to Domestic Prices: Does the Inflationary Environment Matter?",
  "publication": "IMF Working Papers, December 1, 2001",
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  "summary": "The paper tests a hypothesis suggested by Taylor (2000) that a low inflationary environment leads to a low exchange rate pass-through to domestic prices. To test this hypothesis, the paper derives a pass-through relation based on new open economy macroeconomic models.",
  "sections": [
    {
      "heading": "Research question and theoretical approach",
      "content": "- Tests the hypothesis suggested by Taylor (2000) that a low inflationary environment leads to a low exchange rate pass-through to domestic prices.\n- Derives a pass-through relation based on new open economy macroeconomic models."
    },
    {
      "heading": "Data and empirical strategy",
      "content": "- Uses a large database that includes 1979-2000 data for 71 countries to estimate the pass-through relation.\n- Sample period: 1979-2000.\n- Number of countries: 71."
    },
    {
      "heading": "Key findings",
      "content": "- There is strong evidence of a positive and significant association between the pass-through and the average inflation rate across countries and periods.\n- The inflation rate dominates other macroeconomic variables in explaining cross-regime differences in the pass-through."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Consumer price indexes, Exchange rate adjustments, Exchange rate pass-through, Exchange rates, Foreign exchange, Inflation, Prices\n- Keywords: Africa, Consumer price indexes, CPI pass-through, exchange rate, Exchange rate adjustments, Exchange rate pass-through, Exchange rates, import price pass-through, inflation, inflation rate, inflation regime, Pass-through, pass-through estimate, pass-through measure, pass-through relation, period pass-through, WP\n\nIMF Working Paper No. 2001/194 — Dalia S Hakura and Ehsan U. Choudhri, December 1, 2001.\n\n---\n\n Content in this bundle\n\n- wp01194\n  - wp01194 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp01194 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rate-pass-through-to-domestic-prices-does-the-inflationary-environment-matter-15496"
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    "Authors: Dalia S Hakura, Ehsan U. Choudhri",
    "Published: December 1, 2001",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451859867.001",
    "Tests the hypothesis suggested by Taylor (2000) that a low inflationary environment leads to a low exchange rate pass-through to domestic prices.",
    "Derives a pass-through relation based on new open economy macroeconomic models.",
    "Uses a large database that includes 1979-2000 data for 71 countries to estimate the pass-through relation.",
    "Sample period: 1979-2000.",
    "Number of countries: 71.",
    "There is strong evidence of a positive and significant association between the pass-through and the average inflation rate across countries and periods.",
    "The inflation rate dominates other macroeconomic variables in explaining cross-regime differences in the pass-through.",
    "Subject: Consumer price indexes, Exchange rate adjustments, Exchange rate pass-through, Exchange rates, Foreign exchange, Inflation, Prices",
    "Keywords: Africa, Consumer price indexes, CPI pass-through, exchange rate, Exchange rate adjustments, Exchange rate pass-through, Exchange rates, import price pass-through, inflation, inflation rate, inflation regime, Pass-through, pass-through estimate, pass-through measure, pass-through relation, period pass-through, WP",
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