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Exchange rate passthrough to domestic prices in some MENA countries

Author

Listed:
  • Sarra Majoul Smaili

    (LAREQUAD & FSEGT, University of Tunis El Manar, Tunisia)

  • Mohamed safouane Ben aissa

    (LAREQUAD & FSEGT, University of Tunis El Manar, Tunisia)

Abstract

This paper examines the degree of exchange rate pass-through (ERPT) to domestic prices for five MENA countries. Using a cointegrated VAR (vector autoregression) for each country, the ERPT into consumer prices is found to be small in the long run in our sub sample. By analyzing impulse responses derived from the VECM (vector error correction model), we found that the ERPT degree decreases across the different price indices: the pass-through effect is the largest for import prices index, the second for producer prices index and the smallest on consumer prices index.

Suggested Citation

  • Sarra Majoul Smaili & Mohamed safouane Ben aissa, 2018. "Exchange rate passthrough to domestic prices in some MENA countries," Economics Bulletin, AccessEcon, vol. 38(2), pages 1028-1037.
    • Handle: RePEc:ebl:ecbull:eb-16-00704
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    References listed on IDEAS

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    Cited by:

    1. Jiranyakul, Komain, 2018. "Exchange Rate Pass-through to Domestic Prices in Thailand, 2000-2017," MPRA Paper 87492, University Library of Munich, Germany.
    2. Jiranyakul, Komain, 2018. "Exchange Rate Pass-through to Domestic Prices in Thailand, 2000-2017," MPRA Paper 109934, University Library of Munich, Germany.

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    More about this item

    Keywords

    exchange rate pass-through; domestic prices; cointegrated VAR;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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