Title

Aggregate Exchange Rate Pass-Through: Instability and Inference

Document Type

Article

Publication Date

1994

Abstract

The instability displayed by aggregate, economic specifications of passthrough has been cited as evidence in theoretical models of passthrough that allow for hysteresis. This paper argues that 1) and unstable economic specification should not be used as evidence in favor of a theoretical model and 2) Aggregate models of passthrough are very misinformative, given the different market structures that are likely to be aggregated.

Journal

Journal of Economic Integration

Volume

9

Issue

4

First Page

427

Last Page

443