Inflation environment and lower exchange rate pass-through in Brazil: is there a relationship?
Year: 2010
Type: article
Abstract: Recent studies have suggested that the shift from a high to a low inflation environment induces a decline in the degree of exchange rate pass-through (ERPT) into prices. In this paper we present empirical evidence on this matter for Brazil, applying a smooth transition regression model and testing lagged inflation as a potential transition variable. The results presented in this paper go in line with the literature, and suggest that the lower ERPT largely documented for Brazil in recent years may also be a corollary of low and stable inflation.
Source: Revista Brasileira de Economia
Author: Reginaldo Pinto Nogueira Junior
Institution: Fundação João Pinheiro
Language: English
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $68
OpenAlex ID: W2169833264