Search Results
Journal Article
Trade between the United States and Eastern Europe
Journal Article
What drives large current account deficits?
Journal Article
Import prices and the exchange rate
Journal Article
U.S. production abroad
Journal Article
Central bank independence and economic performance
Working Paper
Pass-through estimates and the choice of an exchange rate index
We examine exchange rate pass-through into U.S. import prices in 29 manufacturing industries using eight exchange rate indexes. These indexes vary by the number currencies included; whether the weight on each currency is based on total trade with the United States or solely imports; and, whether the weights vary by industry. Our results indicate that pass-through is generally incomplete but varies across industries. Moreover, pass-through is sensitive to the exchange rate index. Using bootstrapped J tests we show that major currency indexes perform better than their broad currency ...
Working Paper
Size matters: asymmetric exchange rate pass-through at the industry level
Changes in costs faced by firms have direct implications for their price-cost margins. Knowing how prices respond to such cost changes is crucial for understanding how individual markets function and, in turn, for understanding the macroeconomy. We analyze exchange rate pass-through into U.S. import prices for 30 industries to address two questions related to this issue. First, does the direction of a change in the exchange rate affect pass-through? Second, does the size of a change in the exchange rate matter for pass-through? We find that firms in over half the industries studied respond ...
Working Paper
Exchange rate pass-through in U. S. manufacturing: exchange rate index choice and asymmetry issues
This paper explores two issues that have received limited attention in the exchange rate pass-through literature. First, are the pass-through estimates sensitive to the choice of the exchange rate index? Second, are pass-through estimates asymmetric with respect to the sign of exchange rate changes? Using data for 87 industries, we find that the answer to both questions is yes. J-test results indicate that the "Major" exchange rate index produced by the Board of Governors of the Federal Reserve System tends to fit the data better than two alternative indexes. With respect to asymmetry, we ...
Working Paper
The role of the euro as an international currency
The creation of the euro will link an economy that is nearly as large and as open as the United States. Does this imply that the euro will rival the role of the dollar as an international currency? This paper addresses this question through an examination of the determinants of the use of an international currency. It examines both the prospects of the euro becoming an international currency and the implications for the European Union and the United States.