Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis
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 th...
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ftpubmed:oai:pubmedcentral.nih.gov:8743165 2023-05-15T16:42:46+02:00 Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis Edwards, Sebastian Cabezas, Luis 2022-01-10 http://www.ncbi.nlm.nih.gov/pmc/articles/PMC8743165/ https://doi.org/10.1007/s11079-021-09627-5 en eng Springer US http://www.ncbi.nlm.nih.gov/pmc/articles/PMC8743165/ http://dx.doi.org/10.1007/s11079-021-09627-5 © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . CC-BY Open Econ Rev Research Article Text 2022 ftpubmed https://doi.org/10.1007/s11079-021-09627-5 2022-01-16T01:38:10Z 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 nontradables. Text Iceland PubMed Central (PMC) Open Economies Review |
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Research Article Edwards, Sebastian Cabezas, Luis Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis |
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Research Article |
description |
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 nontradables. |
format |
Text |
author |
Edwards, Sebastian Cabezas, Luis |
author_facet |
Edwards, Sebastian Cabezas, Luis |
author_sort |
Edwards, Sebastian |
title |
Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis |
title_short |
Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis |
title_full |
Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis |
title_fullStr |
Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis |
title_full_unstemmed |
Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates: Iceland and the 2008 Crisis |
title_sort |
exchange rate pass-through, monetary policy, and real exchange rates: iceland and the 2008 crisis |
publisher |
Springer US |
publishDate |
2022 |
url |
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC8743165/ https://doi.org/10.1007/s11079-021-09627-5 |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Open Econ Rev |
op_relation |
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC8743165/ http://dx.doi.org/10.1007/s11079-021-09627-5 |
op_rights |
© The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . |
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CC-BY |
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https://doi.org/10.1007/s11079-021-09627-5 |
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Open Economies Review |
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1766033135478243328 |