State-Dependent Pricing, Local-Currency Pricing, and Exchange Rate PassThrough,” Globalization and Monetary Policy Institute Working Paper no
| Title: | State-Dependent Pricing, Local-Currency Pricing, and Exchange Rate PassThrough,” Globalization and Monetary Policy Institute Working Paper no |
|---|---|
| Authors: | Anthony Landry; Jel Codes F; Russell Cooper; Michael Devereux; Simon Gilchrist; Michel Juillard; Robert G. King |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www.dallasfed.org/assets/documents/institute/wpapers/2009/0039.pdf. |
| Publication Year: | 2009 |
| Collection: | CiteSeerX |
| Description: | This paper presents a two-country DSGE model with state-dependent pricing as in Dotsey, King, and Wolman (1999) in which firms price-discriminate across countries by setting prices in local currency. In this model, a domestic monetary expansion has greater spillover effects to foreign prices and foreign economic activity than an otherwise identical model with time-dependent pricing. In addition, the predictions of the state-dependent pricing model match the business-cycle moments better than the predictions of the time-dependent pricing model when driven by monetary policy shocks. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.405.5866; http://www.dallasfed.org/assets/documents/institute/wpapers/2009/0039.pdf |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.405.5866; http://www.dallasfed.org/assets/documents/institute/wpapers/2009/0039.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.FD37D496 |
| Database: | BASE |