This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Macroeconomics: Vol. 6 No. 2 (April 2014)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro Forthcoming Articles

Missing Import Price Changes and Low Exchange Rate Pass-Through

Article Citation

Gagnon, Etienne, Benjamin R. Mandel, and Robert J. Vigfusson. 2014. "Missing Import Price Changes and Low Exchange Rate Pass-Through." American Economic Journal: Macroeconomics, 6(2): 156-206.

DOI: 10.1257/mac.6.2.156

Abstract

A large body of empirical work has found that exchange rate movements have only modest effects on U.S. 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 U.S. 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 U.S. import prices is low.

Article Full-Text Access

Full-text Article

Additional Materials

Authors

Gagnon, Etienne (Federal Reserve Board)
Mandel, Benjamin R. (Federal Reserve Bank of New York)
Vigfusson, Robert J. (Federal Reserve Board)

JEL Classifications

C43: Index Numbers and Aggregation; Leading indicators
E31: Price Level; Inflation; Deflation
E52: Monetary Policy
F31: Foreign Exchange

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Macroeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us