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Revisión del traslado a precios de la devaluación del tipo de cambio oficial durante el per\'iodo 2017-2023 en Argentina
[Review of the devaluation of the official exchange rate pass-through to prices during the period 2017-2023 in Argentine]

Author

Listed:
  • Frank, Luis

Abstract

The paper estimates that the pass-through coefficient of a devaluation to prices paid by consumers in around 20-25% and has a duration of 6 to 8 months, in general. The economic model underlying the estimate follows an adaptive expectations scheme on the free exchange rate, while the associated econometric model is an error correction model (ECM). The simulation of various devaluation scenarios with the ECM model reveals that gradual devaluations extend the price adjustment more than proportionally because the adjustment occurs more slowly, although they reduce and postpone the initial inflationary peak. In the paper we estimate the pass-through elasticities for all the components of the GBA-CPI, appealing in several cases to the robust LAD estimator to overcome some econometric difficulties. The general transfer function is obtained indirectly by aggregation of the functions of each component of the CPI.

Suggested Citation

  • Frank, Luis, 2023. "Revisión del traslado a precios de la devaluación del tipo de cambio oficial durante el per\'iodo 2017-2023 en Argentina [Review of the devaluation of the official exchange rate pass-through to pri," MPRA Paper 117904, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117904
    as

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    File URL: https://mpra.ub.uni-muenchen.de/117904/1/Pass-through.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/121207/1/MPRA_paper_121207.pdf
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    References listed on IDEAS

    as
    1. Yu Hsing, 2021. "Response of Domestic Prices to Exchange Rate Movements in Argentina," Business and Economic Research, Macrothink Institute, vol. 11(2), pages 218-226, June.
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    More about this item

    Keywords

    devaluation; exchange rate; pass-through; ECM;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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