This paper presents a nonlinear relationship between exchange rate pass-through (ERPT) and inflation volatility. Through the lens of a threshold framework, we uncover a clear evidence of near to one ERPT to consumer prices once inflation volatility crosses a threshold level of 4.17. Clearly, there are significant differences in the degree of ERPT between the high and low inflation volatility in the inflation targeting (IT) and non-IT Asian countries.
CITATION STYLE
Soon, S. V., Baharumshah, A. Z., & Wohar, M. E. (2018). Exchange rate pass-through in the Asian countries: does inflation volatility matter? Applied Economics Letters, 25(5), 309–312. https://doi.org/10.1080/13504851.2017.1319553
Mendeley helps you to discover research relevant for your work.