publication . Preprint . 2007

Pass-Through to Import Prices: Evidence from Developing Countries

Miguel Fuentes;
Open Access
  • Published: 01 Jan 2007
In this paper I study the pass-through of nominal exchange rate changes to the price of imported goods in four developing countries. The results indicate that 75% of changes in the exchange rate are passed-through to the domestic currency price of imported goods within one quarter. Complete pass-through is attained within one year. There is no evidence that exchange rate pass-through to the price of imported goods has declined over time even in those countries that have managed to reduce inflation significantly and open their economies to foreign competition.
free text keywords: Exchange rate pass-through, local currency pricing, macroeconomics of developing countries, jel:F31, jel:F41
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