The exchange rate EUR-USD pass-through to US import Prices
Session
Management, Business and Economics
Description
In the second period of 2014 and the beginning of 2015, USD strengthened against EUR by 25%. In this paper I measure the impact that this change in USD’s value has on US import prices. Prior to year 2000, there have been many currencies in Europe, and the literature lacks publications focusing especially on EUR/USD impact in US import prices.
This paper answers questions regarding the magnitude of exchange rate pass-through to import prices. It employs OLS and it finds a low exchange rates pass-through to US import prices. This paper is of high interest for government officials when deciding on the stance of monetary policies. The findings in this paper are also important in the decision-making process of trading organizations as well as to US consumers, as it affects them directly.
Keywords:
Exchange Rate, Imports, Euro, Dolar, Monetary Policy
Session Chair
Edmond Hajrizi
Session Co-Chair
Armend Muja
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-437-54-7
Location
Durres, Albania
Start Date
28-10-2017 9:00 AM
End Date
28-10-2017 10:30 AM
DOI
10.33107/ubt-ic.2017.272
Recommended Citation
Dobratiqi, Nehat, "The exchange rate EUR-USD pass-through to US import Prices" (2017). UBT International Conference. 272.
https://knowledgecenter.ubt-uni.net/conference/2017/all-events/272
The exchange rate EUR-USD pass-through to US import Prices
Durres, Albania
In the second period of 2014 and the beginning of 2015, USD strengthened against EUR by 25%. In this paper I measure the impact that this change in USD’s value has on US import prices. Prior to year 2000, there have been many currencies in Europe, and the literature lacks publications focusing especially on EUR/USD impact in US import prices.
This paper answers questions regarding the magnitude of exchange rate pass-through to import prices. It employs OLS and it finds a low exchange rates pass-through to US import prices. This paper is of high interest for government officials when deciding on the stance of monetary policies. The findings in this paper are also important in the decision-making process of trading organizations as well as to US consumers, as it affects them directly.