Inflation targeting and exchange rate pass-through
The paper presents evidence on exchange rate pass-through (ERPT) for a set of emerging markets before and after the adoption of Inflation Targeting (IT). Some developed economies are also analysed for comparison. We use an ARDL model to estimate the short-run and the long-run effects of depreciations on consumer and producer prices. The results show that ERPT has declined after IT for both price indexes. Nonetheless, this reduction does not mean that ERPT is no longer existent, especially over the long-run.
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| Format: | Digital revista |
| Language: | English |
| Published: |
Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto da Universidade de São Paulo
2007
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| Online Access: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1413-80502007000200002 |
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