The Effect of Import Price Changes on Domestic Inflation: An Empirical Test of the Ratchet Effect: Note

1990 ◽  
Vol 22 (2) ◽  
pp. 263 ◽  
Author(s):  
Farhad Rassekh ◽  
Barry Wilbratte
Keyword(s):  
Empirical Test ◽  
Import Price ◽  
Ratchet Effect ◽  
Price Changes ◽  
Domestic Inflation

scholarly journals The Hitchhiker’s Guide to Missing Import Price Changes and Pass-Through

2012 ◽  
Author(s):  
Etienne Gagnon ◽  
Benjamin R. Mandel ◽  
Robert John Vigfusson
Keyword(s):  
Import Price ◽  
Price Changes ◽  
Pass Through

scholarly journals Examination of the Exchange Rate and Import Price Pass-through to Inflation: A View from Nigeria

2020 ◽  
Author(s):  
Samuel F Onipede ◽  
Nafiu A Bashir ◽  
Kodili N Nduka ◽  
Nuruddeen Usman
Keyword(s):  
Exchange Rate ◽  
Vector Autoregression ◽  
Import Price ◽  
Domestic Currency ◽  
Structural Vector Autoregression ◽  
Vector Autoregression Model ◽  
Autoregression Model ◽  
Pass Through ◽  
Structural Vector ◽  
Domestic Inflation

Abstract We examine the effect of exchange rate and import price pass-through to inflation in Nigeria using headline inflation and import price data, with the aid of a non-recursive Structural Vector Autoregression model. Our results indicate mostly incomplete ERPT and IPPT to inflation. Specifically, we found that (i) the ERPT to the INF is incomplete at all horizons. (ii) IPPT to the INF is incomplete at all horizons. (iii) IPPT to inflation is relatively more rapid than the ERPT to inflation. The findings further suggest that the monetary authority should be wary of using devaluation of the domestic currency as a way of propping up the economy as that would not only aggravate domestic inflation but likely to also increase the ERPT. Similarly, harmonizing the disparate exchange rate windows in the economy might reduce import price pass-through to domestic inflation. Also, the size and speed of both ERPT and IPPT from the study suggest that relevant authorities need to strengthen domestic industries and instill confidence in consumers, to reduce reliance on imports.JEL Classification: C32; E31; F31; 055

scholarly journals Retailers and Consumers: The Pass-through of Import Price Changes

World Economy ◽  
2016 ◽  
Vol 40 (7) ◽  
pp. 1314-1344 ◽  
Author(s):  
Eike Berner ◽  
Laura Birg ◽  
Dominik Boddin
Keyword(s):  
Import Price ◽  
Price Changes ◽  
Pass Through

scholarly journals Missing Import Price Changes and Low Exchange Rate Pass-Through

2014 ◽  
Vol 6 (2) ◽  
pp. 156-206 ◽  
Author(s):  
Etienne Gagnon ◽  
Benjamin R. Mandel ◽  
Robert J. Vigfusson
Keyword(s):  
Exchange Rate ◽  
Large Body ◽  
Empirical Work ◽  
Import Price ◽  
Price Changes ◽  
Import Price Index ◽  
Exchange Rate Movements ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
Bureau Of Labor Statistics

A large body of empirical work has found that exchange rate movements have only modest effects on US inflation. However, exchange rate pass-through may be underestimated because some price changes are missed when constructing price indexes. We investigate downward biases that arise when items exit or enter the US import price index. Using Bureau of Labor Statistics microdata, we find that, although potentially large in theory, the empirical biases are modest over typical forecast horizons. As such, the empirical evidence continues to support the conclusion that pass-through to US import prices is low. (JEL C43, E31, E52, F31)

scholarly journals Missing Import Price Changes and Low Exchange Rate Pass-through

2012 ◽  
Vol 2012 (1040r) ◽  
pp. 1-58 ◽  
Author(s):  
Etienne Gagnon ◽  
◽  
Benjamin R. Mandel ◽  
Robert J. Vigfusson
Keyword(s):  
Exchange Rate ◽  
Import Price ◽  
Price Changes ◽  
Pass Through ◽  
Exchange Rate Pass Through

scholarly journals Commodity Price Changes and Domestic Inflation in the CEMAC Zone: Evidence from Panel Cointegration

2021 ◽  
Vol 13 (5) ◽  
pp. 93
Author(s):  
Njoupouognigni Moussa ◽  
Ndambendia Houdou
Keyword(s):  
Food Policy ◽  
Consumer Price Index ◽  
Commodity Prices ◽  
Panel Cointegration ◽  
Commodity Price ◽  
Food Prices ◽  
Price Changes ◽  
Long Run ◽  
Pass Through ◽  
Domestic Inflation

In this study, we highlight the issue of the recent rise of food prices and other commodities on domestic inflation in the CEMAC zone. Results show that there is a long-run relationship between consumer price index, commodity prices and traditional determinants of inflation. Indeed, an appreciation of the nominal effective exchange rate and a rise of interest rate reduce domestic inflation while excessive money supply and a surge of commodity prices are potential sources of inflation in the region. Moreover, Pass-through from commodity price changes to domestic inflation in the region is incomplete because of the CFA Franc peg to Euro. An efficient use of the tools of monetary policy and a coordinated food policy on crops are more likely to reduce inflationary pressures in the region.

scholarly journals The Hitchhiker's Guide to Missing Import Price Changes and Pass-through

2012 ◽  
Vol 2012 (1040) ◽  
pp. 1-54
Author(s):  
Etienne Gagnon ◽  
◽  
Benjamin R. Mandel ◽  
Robert J. Vigfusson
Keyword(s):  
Import Price ◽  
Price Changes ◽  
Pass Through

scholarly journals The Hitchhiker’s Guide to Missing Import Price Changes and Pass-Through

2012 ◽  
Author(s):  
Robert John Vigfusson ◽  
Etienne Gagnon ◽  
Benjamin R. Mandel
Keyword(s):  
Import Price ◽  
Price Changes ◽  
Pass Through
Sign in / Sign up

Export Citation Format

Share Document