Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis / Sebastian Edwards, Luis Cabezas.

By:

Edwards, Sebastian

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w28520.Publication details: Cambridge, Mass. National Bureau of Economic Research 2021.Description: 1 online resource: illustrations (black and white)Subject(s):

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: We use detailed data for Iceland to examine two often-neglected aspects of the "exchange rate pass-through" problem. First, we investigate whether the pass-through coefficient varies with the degree of "international tradability" of goods. Second, we analyze if the pass-through coefficient depends on the monetary policy framework. We consider 12 disaggregated price indexes in Iceland for 2003-2019, a period that includes Iceland's banking and currency crisis of 2008. We find that the pass-through declined around the time Iceland reformed its "flexible inflation targeting," and that the coefficients are significantly higher for tradable than for nontradable goods.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w28520 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w28518 Limited-Tenure Concessions for Collective Goods /	nber w28519 The Trade-off Between Prioritization and Vaccination Speed Depends on Mitigation Measures /	nber w2852 Money, Income and Prices After the 1980s /	nber w28520 Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis /	nber w28521 Can Automatic Government Spending Be Procyclical? /	nber w28522 Voice at Work /	nber w28523 COVID-19 Has Strengthened the Relationship Between Alcohol Consumption and Domestic Violence /	Next

March 2021.

We use detailed data for Iceland to examine two often-neglected aspects of the "exchange rate pass-through" problem. First, we investigate whether the pass-through coefficient varies with the degree of "international tradability" of goods. Second, we analyze if the pass-through coefficient depends on the monetary policy framework. We consider 12 disaggregated price indexes in Iceland for 2003-2019, a period that includes Iceland's banking and currency crisis of 2008. We find that the pass-through declined around the time Iceland reformed its "flexible inflation targeting," and that the coefficients are significantly higher for tradable than for nontradable goods.