Nonlinear pass-through of exchange rate shocks on inflation : a bayesian smooth transition VAR approach

Borradores de Economia
Número: 
930
Publicado: 
Clasificación JEL: 
F31, E31, E52, C51, C52
Palabras clave: 
Exchange Rate Pass-Through, Pricing Along The Distribution Chain, Endogeneity, Nonlinearity

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Determining the exchange rate pass-through on inflation is a necessity for central banks as well as for firms and households. This is an apparently easy and intuitive task, but it faces high complexity and uncertainty. This paper examines the nature of th