Revisiting the exchange rate pass through: A general equilibrium perspective

Abstract

Los autores del presente artículo ceden sus derechos, en forma no exclusiva, para que se incorpore la versión digital del mismo al Repositorio

E Pluribus Plures: Shock Dependency of the Usd Pass-Through to Real and Financial Variables

“…the variable of interest and of the US dollar. This is a standard metric used, between others, by Forbes et al (2018) and García-Cicco and García-Schmidt (2020). It is also known as the "dynamic multiplier" and is formally defined as:…”

Navigating Uncharted Waters: The Transformation of the Bank of Korea’s Monetary Policy in Response to Global Economic Uncertainty

“…In Equation (20), S represents household savings, indicating the balance of bank debt originating from households, and R and R represent the debt balances of nontrade firms and trade intermediate goods manufacturers, that is, bank loans, respectively. Drawing on the research of Bajraj et al [77], Agénor and Jia [78], Lozej et al [79], García-Cicco and García-Schmidt [80], Davis et al [81], and Sun et al [82], this article posits that due to an imperfect financial system, domestic banks operate in a non-efficient state. Additionally, it is highlighted that the intermediary services provided by these banks incur operational costs.…”

State-Dependent Exchange Rate Pass-Through

“…The rate of exchange rate pass-through has been found to have declined significantly over the past several decades, associated with the changing composition of imported goods (Campa and Goldberg 2005), the prevalence of price stability (Choudhri and Hakura 2006), and the increased credibility of monetary policy (Carrière-Swallow and others 2021). It has also been found to depend on the nature of the shock that causes the exchange rate depreciation (Forbes, Hjortsoe, and Nenova 2018;García-Cicco and García-Schmidt 2020). Do these findings remain valid?…”