Exchange Rate Pass-Through and Inflation in Dollarized Economies: Evidence from the Middle Eastern and North African Countries

Seyed Kamal Sadeghi (), Majid Feshari (), Maryam Barzegar Marvasti () and Zhila Ghanbari ()
Additional contact information
Seyed Kamal Sadeghi: Department of Economics, University of Tabriz, Iran.
Majid Feshari: Department of Economics, Kharazmi University, Iran.
Maryam Barzegar Marvasti: Department of Economics, University of Tabriz, Iran.
Zhila Ghanbari: Department of Economics, University of Tabriz, Iran.

Iranian Economic Review (IER), 2015, vol. 19, issue 2, 139-147

Abstract: The investigation of exchange rate pass-through is an important issue in international finance. The relationship between exchange rate pass-through and exchange rate arrangements such as the dollarization regime has been examined in recent decades. For this purpose, the main objective of this study is to investigate the effect of exchange rate passthrough on the domestic inflation in selected Middle Eastern and North African countries with emphasis on the dollarization regime over the period from 1994 to 2012. The empirical model has been estimated by GMM approach for these countries. The main findings of this paper reveal that exchange rate appreciation (currency depreciation) has a positive and significant influence on the domestic inflation, and this effect is greater than in highly dollarized economies.

Keywords: Dollarization; Exchange Rate Pass-Through; Generalized method of moments; Inflation. (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
ftp://80.66.179.253/eut/journl/20152-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:19:y:2015:i:2:p:139

Access Statistics for this article

Iranian Economic Review (IER) is currently edited by Dr.Hossien Abbasinejad

More articles in Iranian Economic Review (IER) from Faculty of Economics,University of Tehran.Tehran,Iran Contact information at EDIRC.
Bibliographic data for series maintained by [z.rahimalipour] ().