Exchange Rates and Prices: Evidence from the 2015 Swiss Franc Appreciation

Raphael Auer, Ariel Burstein and Sarah Lein

No 28404, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We dissect the impact of a large and sudden exchange rate appreciation on Swiss border import prices, retail prices, and consumer expenditures on domestic and imported non-durable goods, following the removal of the EUR/CHF floor in January 2015. Cross-sectional variation in border price changes by currency of invoicing carries over to consumer prices and allocations, impacting retail prices of imports and competing domestic goods, as well as import expenditures. We provide measures of the sensitivity of retail import prices to border prices and the sensitivity of import shares to relative prices, which is higher when using retail prices than border prices.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-cwa, nep-eec, nep-mon and nep-opm
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Published as Raphael Auer & Ariel Burstein & Sarah M. Lein, 2021. "Exchange Rates and Prices: Evidence from the 2015 Swiss Franc Appreciation," American Economic Review, American Economic Association, vol. 111(2), pages 652-686, February.

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Related works:
Journal Article: Exchange Rates and Prices: Evidence from the 2015 Swiss Franc Appreciation (2021)
Working Paper: Exchange Rates and Prices: Evidence from the 2015 Swiss Franc Appreciation (2020)
Working Paper: Exchange rates and prices: evidence from the 2015 Swiss franc appreciation (2018)
Working Paper: Exchange Rates and Prices: Evidence from the 2015 Swiss Franc Appreciation (2018)
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