Exchange rate pass-through: A generalization

Hamid Beladi, Avik Chakrabarti () and Sugata Marjit

Journal of Mathematical Economics, 2010, vol. 46, issue 4, 493-504

Abstract: The extent of exchange rate pass-through has been playing an increasingly pivotal role in the transmission of exchange rate shocks and adequate policy responses. We develop a model of exchange rate pass-through that allows the stochastic process of exchange rate to include the lagged values of the velocity of money. We show that the likelihood and extent of pass-through is sensitive to the lagged response.

Keywords: Exchange; rate; Pass-through; Stochastic; processes; Brownian; motion (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Working Paper: Exchange Rate Pass-Through: A Generalization (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:46:y:2010:i:4:p:493-504

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