Arbeitspapier
Exchange rate pass-through to consumer prices: Theory and recent evidence
In an open economy such as Canada's, exchange rate movements can have a material impact on consumer prices. This is particularly important in the current context, with the significant depreciation of the Canadian dollar vis-a-vis the U.S. dollar since late 2012. This paper provides a broad overview of the various mechanisms by which exchange rate movements pass through to consumer prices and discusses the implications of exchange rate pass-through (ERPT) for the conduct of monetary policy. It then describes some of the tools used at the Bank of Canada to help quantify ERPT. We conclude by taking a closer look at the current situation in Canada, presenting a range of evidence that suggests ERPT has played an important role in recent inflation dynamics.
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Canada Discussion Paper ; No. 2015-9
- Classification
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Wirtschaft
Price Level; Inflation; Deflation
Monetary Policy
Foreign Exchange
- Subject
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Exchange rates
Inflation and prices
Taux de change
Inflation et prix
- Event
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Geistige Schöpfung
- (who)
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Savoie-Chabot, Laurence
Khan, Mikael
- Event
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Veröffentlichung
- (who)
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Bank of Canada
- (where)
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Ottawa
- (when)
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2015
- DOI
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doi:10.34989/sdp-2015-9
- Handle
- Last update
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10.03.2025, 11:44 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
- Arbeitspapier
Associated
- Savoie-Chabot, Laurence
- Khan, Mikael
- Bank of Canada
Time of origin
- 2015
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