scholarly journals Exchange Rate Pass-Through and Real Exchange Rate in EU Candidate Countries

2001 ◽  
Author(s):  
Zsolt Darvas
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Eu Candidate Countries ◽  
Pass Through ◽  
Exchange Rate Pass Through

scholarly journals The Impact Of Exchange Rate Pass-Through On Serbian Export Competitiveness

2014 ◽  
Vol 52 (2) ◽  
pp. 197-214
Author(s):  
Ivan Marković ◽  
Milan Marković
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Foreign Currency ◽  
Nominal Exchange Rate ◽  
National Currency ◽  
The Real ◽  
Positive Effects ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
The Impact

Abstract The permanent existence of inflation in Serbia adversely affects achievement of macroeconomic stability. Its effects are reflected in a decrease in the real exchange rate, low price competitiveness of exports and deterioration in the balance of payments. The real exchange rate is an instrument which shows that in conditions of faster growth rate in a country than abroad, the domestic economy can't be competitive in the international market. Implementation of appropriate exchange rate regime inevitably leads to problems of exchange rate changes on import prices and inflation. The research aims to demonstrate the interdependence of inflation and depreciation, and the fact that the general price level increase is a main factor that hinders the realization of the positive effects of the national currency depreciation. Unstable monetary situation in the country undermines the goal of stimulating exports through an increase in the nominal exchange rate and by reducing export prices in foreign currency. Export becomes uncompetitive, while the depreciation of the national currency is quickly spread to inflation through the exchange rate pass-through.

scholarly journals Policy of Inflation Targeting in the Presence of Fiscal Deficit and External Debt: Opt or Not to Opt.

2011 ◽  
Vol 50 (4II) ◽  
pp. 841-852
Author(s):  
Muhammad Ali Kemal
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Real Exchange Rate ◽  
Real Interest Rate ◽  
Foreign Exchange Market ◽  
Inflation Targeting ◽  
Main Task ◽  
Short Run ◽  
Pass Through ◽  
Exchange Rate Pass Through

The main task of the macroeconomic policy-makers is to control unemployment and inflation at the minimum possible level. Different policies have been tried to control inflation at its minimum possible level and inflation targeting is the most popular among them. It is the commitment to maintain inflation at the announced level and use interest rate as an instrument to control it if it is expected to diverge from the announced level. However in a higher \dollar denominated debt. country Central Bank is reluctant to increase interest rate because it pressurises the foreign exchange market, which leads to exchange rate depreciation. If there is exchange rate pass through effect to prices, depreciation leads to increase in prices. Thus increase in interest rate does not decrease prices instead results in increase in prices. The two important linkages were tested in this study are (i) increase in real interest rate depreciates the currency, and (ii) depreciation in real exchange rate leads to increase in prices. Using VAR model we concluded that real exchange rate is not significantly associated to the real interest rate in the short run and exchange rate pass through effect to prices is not present in Pakistan.

EDB Special Report 2019. Exchange Rate Pass-Through Effects on Inflation in EDB Member Countries

2019 ◽  
Author(s):  
Aleksei Kuznetsov ◽  
A. I. Kharitonchik ◽  
Aigul Berdigulova ◽  
K. S. Fyodorov
Keyword(s):  
Exchange Rate ◽  
Special Report ◽  
Pass Through ◽  
Exchange Rate Pass Through
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