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Keywords
- Exchange Rate Pass-through
- International Competitiveness
- Law of one Price
- Price Setting Behavior
- Purchasing Power Parity
About this book
The book deals with real exchange rate changes resulting either from shifts in nominal exchange rates or increases in costs that are asymmetric across countries. It is shown how exchange rates and local production costs are passed through into import prices. It is found both analytically and empirically for OECD countries that pass-through is incomplete and the degree of pass-through depends on country and industry characteristics such as production share, market structure, product attributes and demand features. The book also investigates the implications of exchange rate changes for profits, investment and the entry/exit decisions of firms. The main finding is that even though the exchange rate changes have a limited impact on price competitiveness, they do matter for location and investment decisions.
Authors and Affiliations
Bibliographic Information
Book Title: The Real Exchange Rate and Prices of Traded Goods in OECD Countries
Authors: Holger Brauer
Series Title: Kieler Studien - Kiel Studies
Publisher: Springer Berlin, Heidelberg
Copyright Information: Springer-Verlag Berlin Heidelberg 2003
Hardcover ISBN: 978-3-540-00430-1Published: 22 July 2003
Series ISSN: 0340-6989
Edition Number: 1
Number of Pages: XXII, 219