{
  "title": "Exchange Rate Pass-Through Over the Business Cycle in Singapore",
  "publication": "IMF Working Papers, June 1, 2011",
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  "summary": "This paper investigates exchange rate pass-through in Singapore using band-pass spectral regression techniques, allowing for asymmetric effects over the business cycle.",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- The paper investigates exchange rate pass-through in Singapore using band-pass spectral regression techniques, allowing for asymmetric effects over the business cycle.\n- First stage pass-through is estimated to be complete and relatively quick, confirming that the exchange rate provides an effective tool to moderate imported inflation in Singapore.\n- Asymmetric pass-through effects over the business cycle are detected:\n  - Importers pass on a smaller share of exchange rate movements during boom periods as compared to recessions.\n- The results suggest that Singapore’s exchange rate policy could afford to \"lean against the wind,\" especially during cyclical expansions."
    },
    {
      "heading": "Methodology",
      "content": "- Estimation technique: band-pass spectral regression techniques.\n- Focus: asymmetric effects over the business cycle and stage pass-through (first stage pass-through emphasized)."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Exchange rate movements can be an effective tool to moderate imported inflation in Singapore given the relatively complete and quick first stage pass-through.\n- Because pass-through is smaller during boom periods than during recessions, Singapore’s exchange rate policy could \"lean against the wind\" particularly during cyclical expansions."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject areas: Business cycles, Consumer price indexes, Economic growth, Exchange rate pass-through, Exchange rates, Foreign exchange, Import prices, Prices.\n- Keywords: Business cycles, Consumer price indexes, Exchange Rate Pass-Through, Exchange rates, Global, import price pass-through, import prices, inflation, nominal exchange rate, pass-through effect, pass-through elasticity, pass-through literature, Singapore, stage pass-through, WP.\n\n---\n\n Content in this bundle\n\n- wp11141\n  - wp11141 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11141 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/exchange-rate-pass-through-over-the-business-cycle-in-singapore-24978"
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    "Authors: Siang Meng Tan, Joey Chew, Sam Ouliaris",
    "Published: June 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455266425.001",
    "The paper investigates exchange rate pass-through in Singapore using band-pass spectral regression techniques, allowing for asymmetric effects over the business cycle.",
    "First stage pass-through is estimated to be complete and relatively quick, confirming that the exchange rate provides an effective tool to moderate imported inflation in Singapore.",
    "Asymmetric pass-through effects over the business cycle are detected:",
    "The results suggest that Singapore’s exchange rate policy could afford to \"lean against the wind,\" especially during cyclical expansions.",
    "Estimation technique: band-pass spectral regression techniques.",
    "Focus: asymmetric effects over the business cycle and stage pass-through (first stage pass-through emphasized).",
    "Exchange rate movements can be an effective tool to moderate imported inflation in Singapore given the relatively complete and quick first stage pass-through.",
    "Because pass-through is smaller during boom periods than during recessions, Singapore’s exchange rate policy could \"lean against the wind\" particularly during cyclical expansions.",
    "Subject areas: Business cycles, Consumer price indexes, Economic growth, Exchange rate pass-through, Exchange rates, Foreign exchange, Import prices, Prices.",
    "Keywords: Business cycles, Consumer price indexes, Exchange Rate Pass-Through, Exchange rates, Global, import price pass-through, import prices, inflation, nominal exchange rate, pass-through effect, pass-through elasticity, pass-through literature, Singapore, stage pass-through, WP.",
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