EconPapers    
Economics at your fingertips  
 

State-dependent pricing, local-currency pricing, and exchange rate pass-through

Anthony Landry ()

No 39, Globalization Institute Working Papers from Federal Reserve Bank of Dallas

Abstract: This paper presents a two-country DSGE model with state-dependent pricing as in Dotsey, King, and Wolman (1999) in which firms price-discriminate across countries by setting prices in local currency. In this model, a domestic monetary expansion has greater spillover effects to foreign prices and foreign economic activity than an otherwise identical model with time-dependent pricing. In addition, the predictions of the state-dependent pricing model match the business-cycle moments better than the predictions of the time-dependent pricing model when driven by monetary policy shocks.

JEL-codes: F41 F42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dge, nep-ifn, nep-mon and nep-opm
Date: 2009
Note: Published as: Landry, Anthony (2010), "State-Dependent Pricing, Local-Currency Pricing, and Exchange Rate Pass-Through," Journal of Economic Dynamics and Control 34 (10): 1859-1871.
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://dallasfed.org/assets/documents/institute/wpapers/2009/0039.pdf (application/pdf)

Related works:
Journal Article: State-dependent pricing, local-currency pricing, and exchange rate pass-through (2010) Downloads
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:feddgw:39

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Globalization Institute Working Papers from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman ().

 
Page updated 2019-12-13
Handle: RePEc:fip:feddgw:39