Has excess capacity abroad reduced U.S. inflationary pressures?

James Orr

Quarterly Review, 1994, vol. 19, issue Sum, 101-106

Abstract: This article examines whether the sizable amount of excess capacity abroad in recent years has eased U.S. inflationary pressures by keeping import prices from rising as fast as the prices of U.S.-produced goods. The analysis finds that overall import price growth has roughly kept pace with U.S. inflation because the effects of lower inflation abroad have been offset by exchange rate changes. In the case of Japan, dollar depreciation has rendered excess capacity basically ineffective against U.S. inflationary pressures.

Keywords: Industrial capacity; Imports; Inflation (Finance); Prices (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/rese ... 19/v19n2article6.pdf Full Text (text/html)

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:fip:fednqr:y:1994:i:sum:p:101-106:n:v.19no.2

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Quarterly Review from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().