Abstract This paper investigates the exchange rate pass through into production prices and consumer prices in Iceland for the time period 2003-2011. The exchange rate pass through is examined with impulse response functions for a standard VAR in rst dierences. Exchange rate pass through in Iceland i...
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Format: | Text |
Language: | English |
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Online Access: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.1083.4620 http://www.ne.su.se/polopoly_fs/1.25796.1318416950%21/menu/standard/file/Asgeirsson_Ormslev_Gunnar.pdf |
Summary: | Abstract This paper investigates the exchange rate pass through into production prices and consumer prices in Iceland for the time period 2003-2011. The exchange rate pass through is examined with impulse response functions for a standard VAR in rst dierences. Exchange rate pass through in Iceland is found to be large and swift both for production prices and consumer prices. Furthermore, variance decomposition analyses show, that the exchange rate is a major contribution variable to forecast variance of the production price index and consumer price index with and without housing prices. |
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