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The Asymme The Asymmetric Ex Tric Exchange Ra Ange Rate Pass-Through T Ass-Through To Inflation In The Selected Asean Countries

Author

Listed:
  • Agus Widarjono

    (Universitas Islam Indonesia)

  • Md Mahmudul Alam

    (University Utara Malaysia)

  • Eko Atmadji

    (Universitas Islam Indonesia)

  • Priyonggo Suseno

    (Universitas Islam Indonesia)

  • Listya Endang Artiani

    (Universitas Islam Indonesia)

Abstract

This study explains the asymmetric Exchange Rate Pass-Through (ERPT) to inflation in Indonesia, Malaysia, and the Philippines, which adopted the floating exchange rate after the 1998 financial crisis. Our empirical results show the existence of the long-run asymmetric ERPT to inflation such that there is no full transmission of depreciation to inflation in each country. The highest degree of ERPT to inflation occurred in Indonesia, while in Malaysia, and the Philippines depreciation (appreciation) is not completely transmitted in the short run. We find that a depreciation has a stronger impact on inflation than appreciation.

Suggested Citation

  • Agus Widarjono & Md Mahmudul Alam & Eko Atmadji & Priyonggo Suseno & Listya Endang Artiani, 2023. "The Asymme The Asymmetric Ex Tric Exchange Ra Ange Rate Pass-Through T Ass-Through To Inflation In The Selected Asean Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(1), pages 105-124, March.
    • Handle: RePEc:idn:journl:v:26:y:2023:i:1d:p:105-124
    DOI: https://doi.org/10.59091/1410-8046.2047
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    References listed on IDEAS

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    More about this item

    Keywords

    Asymmetric; Depreciation; Appreciation; Inflation; Exchange rate;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications

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