A Comparative Analysis of Export Price Pass-through in Three Open Asian Economies: Korea,Singapore and Thailand |
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| Authors: | Amit Ghosh Ramkishen S. Rajan |
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| Affiliation: | 1. Department of Economics and Business , Colorado College , Colorado Springs, USA;2. Department of Economics and Business , Colorado College , Colorado Springs, USA Amit.Ghosh@ColoradoCollege.edu;4. School of Public Policy , George Mason University , Arlington, USA |
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| Abstract: | Abstract The degree of exchange rate pass-through is of paramount importance to small and open economies as it has a direct impact on domestic inflation as well as the effectiveness of exchange rate as an adjustment tool. High exchange rate pass-through (ERPT) is often cited as a reason for a “fear of floating”. This article analyzes the degree of ERPT into the export prices of three Asian economies—Korea, Thailand and Singapore for the period 1980: Q1–2006: Q4 using both US dollar bilateral rates as well as nominal effective exchange rates. The study also examines whether there are asymmetries in ERPT between exchange rate appreciation and depreciation. |
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| Keywords: | Asia exchange rate export prices inflation pass-through (ERPT) nominal effective exchange rate (NEER) pricing-to-market (PTM) |
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