Unité mixte de recherche 7235

On the seemingly incompleteness of exchange rate pass-through to import prices: Do globalization and/or regional trade matter?

Antonia Lopez Villavicencio, Valérie Mignon

This paper assesses the impact of globalization and regionalization on exchange rate pass-through (ERPT) into import prices in three core eurozone countries. To this end, we consider various indicators of globalization and rely on both aggregated (i.e., country level) and disaggregated (i.e., good level) data. Using quarterly data since 1992, we do not find compelling evidence that global factors cause a structural change in the degree of exchange rate pass-through. Indeed, increased trade openness or lower trade tariffs push up ERPT in some sectors, though results are quite sparse. However, regionalization, defined as a higher proportion of intra-EU imports’ share in total imports, reduces the pass-through in a more generalized way. Most importantly, we show that ERPT incompleteness generally observed in the literature is in appearance only and not at play when intra-EU trade is controlled for. Overall, our findings show that ERPT is complete and significant in numerous sectors, meaning that exchange rate changes still exert important pressure on domestic prices.

AGENDA

lundi 27 juin 2022

Law, Institutions and Economics in Nanterre (LIEN)

Miriam Buiten (St Gallen Univ)

En distanciel à 11H30

From intermediaries to moderators of the internet: Should online platforms be liable?

jeudi 30 juin 2022

Doctorants

Zoltán Szücs | Gagnie Pascal Yebarth

Salle 401-402

Le rôle de la police municipale dans la satisfaction des attentes de la population parisienne en termes de tranquillité publique | Politiques publiques et externalités dans les jeux stratégiques de marché

vendredi 1 juillet 2022

Colloques et Workshops

9th Workshop on Economic Analysis of Litigation

lundi 4 juillet 2022

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Webinar conjoint sur l’environnement et la santé dans les villes maritimes

lundi 18 juillet 2022

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Workshop “Sustainability, Public Action, and Well-Being”

jeudi 1 septembre 2022

Professeurs invités

Stéphane Méchoulan

vendredi 16 septembre 2022

Colloques et Workshops

Tables rondes de macro-finance contemporaine

lundi 19 septembre 2022

Colloques et Workshops

Valeur, valeurs

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