Inflation targeting and exchange rate pass-through

The paper presents evidence on exchange rate pass-through (ERPT) for a set of emerging markets before and after the adoption of Inflation Targeting (IT). Some developed economies are also analysed for comparison. We use an ARDL model to estimate the short-run and the long-run effects of depreciation...

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Detalles Bibliográficos
Autor: Nogueira Junior, Reginaldo Pinto
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2007
País:Brasil
Institución:Universidade de São Paulo (USP)
Repositorio:Economia Aplicada
Idioma:inglés
OAI Identifier:oai:revistas.usp.br:article/948
Acceso en línea:https://www.revistas.usp.br/ecoa/article/view/948
Access Level:acceso abierto
Palabra clave:metas inflacionárias
pass-through
economias emergentes
inflation targeting
emerging markets
Descripción
Sumario:The paper presents evidence on exchange rate pass-through (ERPT) for a set of emerging markets before and after the adoption of Inflation Targeting (IT). Some developed economies are also analysed for comparison. We use an ARDL model to estimate the short-run and the long-run effects of depreciations on consumer and producer prices. The results show that ERPT has declined after IT for both price indexes. Nonetheless, this reduction does not mean that ERPT is no longer existent, especially over the long-run.