Global study reveals exchange rate pass-through impact on import prices.
The article looks at how changes in exchange rates affect import prices in 27 OECD countries. By using advanced statistical tests, the researchers found a long-term relationship between exchange rates and import prices. They discovered that import prices only go up by around 0.70% when exchange rates change, showing that the impact is not as strong as expected. This finding helps us understand why global trade imbalances continue to exist.