Macroeconomic Shocks, Exchange Rate Movements and Price Effects of Pass-throughs

DOI:  https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.6455

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Published: Feb 13, 2018
Issue: Vol. 20 No. 2 (2017): julio-diciembre
Section Articles


Keywords: Macroeconomic shocks exchange rate pass-through effects on prices sign restrictions svar.

Main Article Content

Authors

Hernán Rincón-Castro
Norberto Rodríguez-Niño
John Castro-Pantoja

Abstract

The literature that has studied the transmission of exchange rate movements on prices, known as exchange rate pass-throughs, assumes that they are exogenous to the shocks that impact the economy. This assumption has been reviewed according to predictions of modern macroeconomic models, which point out that exchange movements are endogenous. Based on this prediction, this paper demonstrates that the degree of transmission depends on the type of shock that gives rise to the exchange rate movement, i.e., transmission is shock-dependent.

Author Biographies

Hernán Rincón-Castro

Investigador Principal de la Unidad de Investigaciones, Banco de la República.

Norberto Rodríguez-Niño

Econometrista Principal del Departamento de Modelos Macroeconómicos, Banco
de la República.

John Castro-Pantoja

Estudiante en Práctica, Banco de la República.
How to Cite
Rincón-Castro, H., Rodríguez-Niño, N., & Castro-Pantoja, J. (2018). Macroeconomic Shocks, Exchange Rate Movements and Price Effects of Pass-throughs. Revista Economía Del Rosario, 20(2), 213–241. https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.6455
References

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