Differences in exchange rate pass-through in the euro area

Jose Campa and Jose González Mínguez ()
Additional contact information
Jose González Mínguez: Banco de España

No 219, Working Papers from Banco de España

Abstract: This paper focuses on the pass-through of exchange rate changes into the prices of imports made by euro area countries originating outside the area. Using data on import unit values for thirteen different product categories for each country, we estimate industry-specific rates of pass-through across and within countries for all euro members. In the short-run, pass-through rates differ across industries and countries and are less than one. In the long-run neither full pass-through nor equality of pass-through rates across industries and countries can be rejected. Differences exist across euro area countries in the degree that a common exchange rate movement gets transmitted into consumer prices and costs of production indices. Most of these differences in transmission rates are due to the distinct degree of openness of each country to non-euro area imports rather than to the heterogeneity in the structure of imports.

Keywords: exchange rate; pass-through; euro; monetary union (search for similar items in EconPapers)
Pages: 36 pages
Date: 2002-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... o/02/Fic/dt0219e.pdf First version, July 2002 (application/pdf)

Related works:
Journal Article: Differences in exchange rate pass-through in the euro area (2006)
Working Paper: Differences in Exchange Rate Pass-Through in the Euro Area (2004)
Working Paper: Differences in exchange rate pass-through in the euro area (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:0219

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().