Revisiting the decline in the exchange rate pass-through: further evidence from developing countries

Jamel Jouini () and Karim Barhoumi ()

Economics Bulletin, 2008, vol. 3, issue 20, 1-10

Abstract: In this paper, we revisit the Taylor (2000) proposition for some developing countries in order to examine the decline in their pass-through coefficients, and to find possible explanations for this. Our work is motivated by the fact that during the 1990s, some developing countries shifted their monetary policy in order to reduce the inflation. We adopt a methodology based on structural break and cointegration approaches proposed by Bai and Perron (1998), and Gregory and Hansen (1996), respectively. These techniques allow identifying the inflation decline and adopting a long-run approach which is ignored in some empirical works related to the pass-through.

Keywords: cointegration; tests (search for similar items in EconPapers)
JEL-codes: C2 (search for similar items in EconPapers)
Date: 2008-04-08
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Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Revisiting the Decline i he Exchange Rate Pass-Through: Further Evidence from Developing Countries (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-07c20152

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