donderdag 22 oktober 2009

Exporters (good ones) don’t pass-through

The prices of tradable goods are remarkably insensitive to exchange rate movements. This column provides a firm-level explanation. In response to a depreciation, high-performance firms raise their mark-ups rather than their export volumes, and their choices dominate the aggregate export variables.
Read this article from N. Berman et al. on Vox.eu here.

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