Event Title

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

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Oct 28th, 9:00 AM Oct 28th, 10:30 AM

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.