TY  - JOUR
AU  - Burstein,Ariel
AU  - Gopinath,Gita
TI  - International Prices and Exchange Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 18829
PY  - 2013
Y2  - February 2013
UR  - http://www.nber.org/papers/w18829
L1  - http://www.nber.org/papers/w18829.pdf
N1  - Author contact info:
Ariel Burstein
Department of Economics
Bunche Hall 8365
Box 951477
UCLA
Los Angeles, CA 90095-1477
Tel: 310/206-6732
Fax: 310/825-9528
E-Mail: arielb@econ.ucla.edu

Gita Gopinath
Department of Economics
Harvard University
1875 Cambridge Street
Littauer 206
Cambridge, MA 02138
Tel: 617/495-8161
Fax: 617/495-7730
E-Mail: gopinath@harvard.edu
AB  - We survey the recent empirical and theoretical developments in the literature on the relation between prices and exchange rates. After updating some of the major findings in the empirical literature we present a simple framework to interpret this evidence. We review theoretical models that generate insensitivity of prices to exchange rate changes through variable markups, both under flexible prices and nominal rigidities, first in partial equilibrium and then in general equilibrium.
ER  -