Exchange Rate Pass-Through When Market Share Matters.
The authors investigate the pass-through from exchange rates to import prices when firms' future demands depend on their current market shares. They show that profit-maximizing foreign firms may either raise or lower their dollar export prices when the dollar appreciates temporarily (i.e., the...
| Hoofdauteurs: | , |
|---|---|
| Formaat: | Journal article |
| Taal: | English |
| Gepubliceerd in: |
1989
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| _version_ | 1826257966721925120 |
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| author | Froot, K Klemperer, P |
| author_facet | Froot, K Klemperer, P |
| author_sort | Froot, K |
| collection | OXFORD |
| description | The authors investigate the pass-through from exchange rates to import prices when firms' future demands depend on their current market shares. They show that profit-maximizing foreign firms may either raise or lower their dollar export prices when the dollar appreciates temporarily (i.e., the pass-through may be perverse) and that current import prices may be more sensitive to expected future exchange rates than to current exchange rates. They present evidence that suggests the behavior of expected future exchange rates may provide a clue to the puzzling recent behavior of U.S. import prices. |
| first_indexed | 2024-03-06T18:26:34Z |
| format | Journal article |
| id | oxford-uuid:082e4110-e84d-4c73-8be2-db5ce9f9eab3 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T18:26:34Z |
| publishDate | 1989 |
| record_format | dspace |
| spelling | oxford-uuid:082e4110-e84d-4c73-8be2-db5ce9f9eab32022-03-26T09:11:31ZExchange Rate Pass-Through When Market Share Matters.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:082e4110-e84d-4c73-8be2-db5ce9f9eab3EnglishDepartment of Economics - ePrints1989Froot, KKlemperer, PThe authors investigate the pass-through from exchange rates to import prices when firms' future demands depend on their current market shares. They show that profit-maximizing foreign firms may either raise or lower their dollar export prices when the dollar appreciates temporarily (i.e., the pass-through may be perverse) and that current import prices may be more sensitive to expected future exchange rates than to current exchange rates. They present evidence that suggests the behavior of expected future exchange rates may provide a clue to the puzzling recent behavior of U.S. import prices. |
| spellingShingle | Froot, K Klemperer, P Exchange Rate Pass-Through When Market Share Matters. |
| title | Exchange Rate Pass-Through When Market Share Matters. |
| title_full | Exchange Rate Pass-Through When Market Share Matters. |
| title_fullStr | Exchange Rate Pass-Through When Market Share Matters. |
| title_full_unstemmed | Exchange Rate Pass-Through When Market Share Matters. |
| title_short | Exchange Rate Pass-Through When Market Share Matters. |
| title_sort | exchange rate pass through when market share matters |
| work_keys_str_mv | AT frootk exchangeratepassthroughwhenmarketsharematters AT klempererp exchangeratepassthroughwhenmarketsharematters |