TY  - JOUR
AU  - Campa,José Manuel
AU  - Goldberg,Linda S.
AU  - González-Mínguez,José M.
TI  - Exchange-Rate Pass-Through to Import Prices in the Euro Area
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11632
PY  - 2005
Y2  - September 2005
UR  - http://www.nber.org/papers/w11632
L1  - http://www.nber.org/papers/w11632.pdf
N1  - Author contact info:
Jose M. Campa
IESE Business School
Camino del Cerro del Aguila, 3
28023 Madrid
SPAIN
Tel: 34-91-357-0809
Fax: 34-91-357-2913
E-Mail: jcampa@iese.edu

Linda S. Goldberg
Research Department, 3rd Floor
Federal Reserve Bank-New York
33 Liberty Street
New York, NY 10045
Tel: 212/720-2836
Fax: 212/720-6831
E-Mail: linda.goldberg@ny.frb.org

Jose Gonzalez-Minguez
M2  - featured in NBER digest on 2005-09-26
AB  - This paper presents an empirical analysis of transmission rates from exchange rate movements to import prices, across countries and product categories, in the euro area over the last fifteen years. Our results show that the transmission of exchange rate changes to import prices in the short run is high, although incomplete, and that it differs across industries and countries; in the long run, exchange rate pass-through is higher and close to one. We find no strong statistical evidence that the introduction of the euro caused a structural change in this transmission. Although estimated point elasticities seem to have declined since the introduction of the euro, we find little evidence of a structural break in the transmission of exchange rate movements except in the case of some manufacturing industries. And since the euro was introduced, industries producing differentiated goods have been more likely to experience reduced rates of exchange rate pass-through to import prices. Exchange rate changes continue to lead to large changes in import prices across euro-area countries.
ER  -