Macroeconomic Shocks, Movements of the Exchange Rate and Pass-through on Prices [Perturbações macroeconómicas, movimentos da taxa de câmbio e transmissão sobre preços] [Perturbaciones macroeconómicas, movimientos de la tasa de cambio y transmisión sobre precios]

The literature that has studied the transmission of exchange rate movements on prices, known as exchange rate pass-through, assumes that they are exogenous to the shocks that impact the economy. This assumption has been reviewed according to predictions of modern macroeconomic models, which point out that exchange movements are endogenous. Based on this prediction, this paper shows that the degree of transmission depends on the type of shock that gives rise to the exchange rate movement, i.e., transmission is shock-dependent. © Revista de Economía del Rosario. Universidad del Rosario.

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