IT Countries: A Breed Apart? the case of Exchange Rate Pass-Through
Antonia López-Villavicencio and
Marc Pourroy
Additional contact information
Antonia López-Villavicencio: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique
Authors registered in the RePEc Author Service: Antonia López Villavicencio
Working Papers from HAL
Abstract:
This paper estimates the effects of two monetary policy strategies in the exchange rate pass-through (ERPT). To this end, we employ propensity score matching and consider the adoption of a target by a country as a treatment to find suitable counterfactuals to the actual targeters. By controlling for self-selection bias and endogeneity of the monetary policy regime, we show that inflation target has helped in reducing the ERPT, with older regimes more successful than younger ones. However, a de facto flexible exchange rate regime has not noticeable advantages to reduce the extent to which exchange rate fluctuations contribute to inflation instability.
Keywords: exchange rate pass-through; inflation targeting; exchange rate regime; propensity score matching (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-opm
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01614817v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://shs.hal.science/halshs-01614817v1/document (application/pdf)
Related works:
Working Paper: IT Countries: A Breed Apart? the case of Exchange Rate Pass-Through (2017) 
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:hal:wpaper:halshs-01614817
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().