Bericht
Uncertainty about exchange rates affects import prices in the Euro Area
RWI research shows that monetary policy should take uncertainty about exchange rate fluctuations into account. When aiming at price stability, central banks closely monitor exchange rates. Their level is known to influence prices, since many product components are sourced internationally. An RWI study suggests that central bankers should also take the level of uncertainty about future exchange rates into account when aiming at price stability. The study finds that in the Euro Area, importers bear the main burden of the uncertainty. Mainly affected are countries like Germany, Italy, and the Netherlands, whose industries rely heavily on intermediate goods imports. When uncertainty increases, importers buy less goods to lower the risk. Consequently, prices for intermediate goods fall.
- Language
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Englisch
- Bibliographic citation
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Series: RWI Impact Notes
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Blagov, Boris
- Event
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Veröffentlichung
- (who)
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RWI - Leibniz-Institut für Wirtschaftsforschung
- (where)
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Essen
- (when)
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2021
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Bericht
Associated
- Blagov, Boris
- RWI - Leibniz-Institut für Wirtschaftsforschung
Time of origin
- 2021
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Exchange rate pass-through into import prices of Croatia
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Exchange rates and prices : the case of Australian manufactured imports
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Exchange Rate Uncertainty and Import Prices in the Euro Area
Exchange Rates and Import Prices in Switzerland
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Why Do Consumer Prices React less than Import Prices to Exchange Rates?
Exchange rate pass-through into import prices of Croatia
Exchange rates and import prices in Finland: estimation of exchange rate pass-through