01766cas a2200241 a 4500 AALejournalIMF000286 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451943412 1018-5941 BD-DhAAL BD-DhAAL Murgasova, Zuzana. Exchange Rate Pass-Through in Spain / Zuzana Murgasova. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the factors underlying the stability of inflation observed following devaluations of the Spanish peseta, which took place during the 1992-93 Exchange Rate Mechanism (ERM) crisis. The long-run equilibrium relationships between the exchange rate and the aggregate price indices are estimated using the Johansen maximum likelihood-method. The short-run dynamics are obtained from error-correction models. The model is then simulated by calibrating changes in the exogenous variables to their actual values. The results indicate that the cost-push-up effect of devaluations may have been completely offset by determinants of the cyclical position of the economy and the low inflation rate in 1993-94 should not be viewed as unusual. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1996/114 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/114/001.1996.issue-114-en.xml IMF e-Library