Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128079
Authors: 
Herger, Nils
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Study Center Gerzensee 13.08
Abstract: 
This paper develops an empirical framework giving rise to a nonlinear behaviour of the exchange rate pass-through (ERPT). Rather than shifts between low and high inflation, the nonlinearity arises when large swings in the exchange rate trigger market entries and exits of importing firms. Switching regressions are used to distinguish between low and high pass-through regimes of the exchange rate into import prices. For the case of Switzerland, the corresponding results suggest that, though inflation has been low and stable, the ERPT still doubles in value in times of a rapid appreciation of the Swiss Franc.
Subjects: 
Exchange Rate Pass-Through
Import prices
Switching regression
JEL: 
F15
F31
L11
Document Type: 
Working Paper

Files in This Item:
File
Size
482.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.