Exchange Rate Pass-Through in the Euro Area and EU Countries

Ortega, Eva; Osbat, Chiara

doi:10.2139/ssrn.3582541

Cited by 9 publications

(6 citation statements)

References 46 publications

(89 reference statements)

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“…Thus, EUA price can affect core inflation and inflation expectations. As regards the impacts of other exogenous variables, the coefficient of NEERR is negative and significant, which is contrast with the findings of Leiva‐Leon et al (2020) and Ortega and Osbat (2020). The coefficient of GSCP is positive and significant.…”

Section: Estimated Resultscontrasting

confidence: 99%

“…The data are obtained from the Bank for International Settlements. Although core inflation across countries in the Eurozone does not seem to be meaningfully affected by exogenous exchange rate shocks (Leiva‐Leon et al, 2020; Ortega & Osbat, 2020), exchange rate changes may have a gradual impact on core inflation directly via the price of imported final consumer goods, and indirectly via the price of imported intermediate goods used in euro area domestic production.…”

Section: Methodology and Datamentioning

confidence: 99%

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The impact of rising EU Allowance prices on core inflation in the Eurozone

Nishigaki

2023

Economic Affairs

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This article examines the impact of EU Allowance (EUA) prices on core inflation in the Eurozone between 2005 and 2022. The empirical results suggest that a positive shock to the EUA price led to higher long-run inflation expectations and core inflation. This implies that the rise in EUA prices can be passed on to consumers and enterprises, leading to an increase in production costs and consumer prices. And, while a positive shock to EUA prices may promote investment in renewable energy in the short term, the impact is not statistically significant and does not last long. The results suggest considerable potential for European policymakers to re-examine policy mechanisms to accelerate renewable energy investment and maintain price stability in the medium term.

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Section: Estimated Resultscontrasting

confidence: 99%

Section: Methodology and Datamentioning

confidence: 99%

The impact of rising EU Allowance prices on core inflation in the Eurozone

Nishigaki

2023

Economic Affairs

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“…By contrast, Ortega and Osbat (2020) find that the ERPT to euro area import and consumer prices has been stable since the 1990s.…”

Section: Related Literaturementioning

confidence: 69%

Estimating the elasticity of consumer prices to the exchange rate: An accounting approach

Camatte¹,

Daudin

Faubert³

et al. 2023

Journal of International Money and Finance

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“…The academic literature has frequently attempted to explain this phenomenon through globalization -changes in supply chains made it possible to lower production costs and consequently consumer prices (Altansukh et al, 2017;Ball, 2006;Forbes, 2019). It has also been repeatedly emphasized that shocks related to import prices or exchange rate fluctuations have a relatively small impact on the inflation rate (McCarthy, 2007;Ortega, 2020). Furthermore, Eurozone, wage growth remained under control, with only moderate increases in negotiated wages (Hancké & Soskice, 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

The false start of disinflation – evidence from the major European economies

Rybacki,

Klucznik,

Sułkowski

2024

Ekonomista

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Naszym celem jest analiza ryzyk średnioterminowych dla inflacji po kryzysie energetycznym. Analizujemy rozprzestrzenianie się inflacji (tzw. spillovers) pomiędzy pięcioma największymi gospodarkami Unii Europejskiej pod względem ludności, tj. Niemiec, Francji, Włoch, Hiszpanii i Polski. W pracy wykorzystana została metodologia Diebolda i Ylimaza bazująca na modelu VAR. Analiza wskazuje, że wzajemne połączenie między wzrostami inflacji wzmocniły się po wybuchu kryzysu energetycznego. Polska i Hiszpania są krajami, które transmitują inflację do pozostałych gospodarek. Oddziaływanie jest najsilniejsze w przypadku tzw. cen sztywnych, gdzie częstotliwość zmian cenników jest najmniejsza. Analizie poddaliśmy także presję płacową w państwach strefy euro, ze szczególnym uwzględnieniem Holandii z uwagi na historycznie wysoką częstotliwość strajków płacowych. Dane pokazują, że presja płacowa z tego kraju poprzedza podobne zmiany w pozostałych gospodarkach strefy euro. Oba czynniki sugerują, że powrót inflacji do celów banków centralnych w Europie będzie powolny.

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Exchange Rate Pass-Through in the Euro Area and EU Countries

Cited by 9 publications

References 46 publications

The impact of rising EU Allowance prices on core inflation in the Eurozone

The impact of rising EU Allowance prices on core inflation in the Eurozone

Estimating the elasticity of consumer prices to the exchange rate: An accounting approach

The false start of disinflation – evidence from the major European economies

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