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Sunny123 Posted 9 years ago
Vocabulary
Exchange-rate pass-through
Hello everyone. In the following definition I need the meaning of "pass-through"
definition: Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates.
"pass-through" = what?
definition: Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates.
"pass-through" = what?
Top answer
An exchange rate is what a person will pay for a foreign currency in their home currency. When exporting or importing goods (not just exchanging currency), the exchange rate will be higher or lower simply because of the effects of differential inflation or deflation between the countries. What is "passed-through" is the additional cost of importing/exporting to a country with high inflation compared to a country with no inflation.
- An exchange rate is what a person will pay for a foreign currency in their home currency.
- When exporting or importing goods (not just exchanging currency), the exchange rate will be higher or lower simply because of the effects of differential inflation or deflation between the countries.
- What is "passed-through" is the additional cost of importing/exporting to a country with high inflation compared to a country with no inflation.
- org/wiki/Exchange-rate_pass-through
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7 Answers
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An exchange rate is what a person will pay for a foreign currency in their home currency.
When exporting or importing goods (not just exchanging currency), the exchange rate will be higher or lower simply because of the effects of differential inflation or deflation between the countries. What is "passed-through" is the additional cost of importing/exporting to a country with high infl
When exporting or importing goods (not just exchanging currency), the exchange rate will be higher or lower simply because of the effects of differential inflation or deflation between the countries. What is "passed-through" is the additional cost of importing/exporting to a country with high infl
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AlpheccaStarsAn exchange rate is what a person will pay for a foreign currency in their home currency.When exporting or importing goods (not just exchanging currency), the exchange rate will be higher or lower simply because of the effects of differential inflation or deflation between the countries. What is "passed-through" is the additional cost of importing/exporting t
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sunny123A panel threshold approach = what?There is not enough context given to determine a meaning.
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AlpheccaStars sunny123 A panel threshold approach = what? There is not enough context given to determine a meaning.Revisiting the role of inflation environment in exchange rate pass-through:
A panel threshold approach
"panel" here = what?
A panel threshold approach = what?
?
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sunny123A panel threshold approach = what??It describes a statistical algorithm first named and described by Bruce E. Hansen (Hansen, B.E. (2000), Sample splitting and threshold estimation, Econometrica, 68, 575-603.) where the data itself is split and then examined to optimize threshold values, instead of just picking an arbitrary fixed value. This
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Thank you Alphecca, in the following paragraph I also need the meaning of "regime-dependence"
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When estimating the ERPT for each group of countries, we point out a strong regime-dependence of pass-through to inflation enviro
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When estimating the ERPT for each group of countries, we point out a strong regime-dependence of pass-through to inflation enviro
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regime-dependent = Dependent on a certain class of government. "Regime" is a negative term for a type of government with a strong authority figure, such as a king or dictator. In these states, economic decisions are governed by ideology rather than economic reality. The countries with highest inflation rates are typically governed by autocratic strong men (dictators, kings) or plutocracies.
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