Globalisation, Pass-through and the Optimal Policy Response to Exchange Rates
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University of British Columbia, Vancouver, BC V6T 1Z1, Canada and Bank for International Settlements, 78th Floor, Two IFC, 8 Finance Street, Central, Hong Kong. The opinions in this paper are those of the authors are not necessarily shared by the Bank for International Settlements. We thank Lillie Lam, Pablo Garcia-Luna, Giovanni Sgro and Bat-el Berger for excellent research assistance and Aaron Mehrotra, Ippei Fujiwara and participants of seminars at the Reserve Bank of Australia and University of Canterbury and conferences hosted by the People's Bank of China-BIS, Reserve Bank of New Zealand and City University of Hong Kong-JIMF for helpful comments. Any remaining errors are solely our responsibility. This research was partly supported by ESRC research grant RES-062-23-3080. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.