01932cas a2200241 a 4500 AALejournalIMF002841 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451843156 1018-5941 BD-DhAAL BD-DhAAL Faruqee, Hamid. Exchange Rate Pass-Through in the Euro Area : The Role of Asymmetric Pricing Behavior / Hamid Faruqee. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (27 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 Exchange rate pass-through in a set of euro area prices along the pricing chain is examined. Using a vector autoregression (VAR) approach, the empirics analyze the joint time-series behavior of the euro exchange rate and a system of euro-area prices in response to an exchange rate shock. The impulse-response functions from the VAR estimates are used to identify-in a 'new open economy macroeconomics model'-those key behavioral parameters that best replicate the pattern of exchange rate pass-through in the euro area. Area-wide prices are found to display incomplete pass-through, consistent with euro currency-pricing and pricing-to-market behavior. The results are compared to those for the other major industrial economies, and suggest that, as with the United States, "expenditure-switching" effects on the current account still operate but are generally small. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2004/014 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/014/001.2004.issue-014-en.xml IMF e-Library