|
Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in the exchange rate. Formally, exchange-rate pass-through is the elasticity of local-currency import prices with respect to the local-currency price of foreign currency. In other words, exchange-rate pass-through is the percentage change, in local currency, of import prices resulting from a one percent change in the exchange rate between the exporting and importing countries. A change in import prices affects retail and consumer prices. When exchange-rate pass-through is greater, there is more transmission of inflation between countries. This is one reason why exchange-rate pass-through is an important topic in international economics. Exchange-rate pass-through is also related to the law of one price and purchasing power parity. ==Example== Suppose that the US is importing widgets from England. The widgets cost $10 and ₤1 costs $1. Then the British Pound appreciates against the dollar and now ₤1 costs $1.50. Also suppose that the widgets now cost $12.50. There has been a 50% change in the exchange rate and a 25% change in price. The exchange rate pass-through is : For every 1% increase in the exchange rate, there has been a .5% increase in the price of the widgets. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Exchange-rate pass through」の詳細全文を読む スポンサード リンク
|