01703cas a2200241 a 4500 AALejournalIMF003398 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842845 1018-5941 BD-DhAAL BD-DhAAL Faruqee, Hamid. Pricing to Market and the Real Exchange Rate / Hamid Faruqee. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (34 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 investigates the consequences of pricing to market for exchange rate pass-through and real exchange rate dynamics across different patterns of trade under market segmentation. Under two-way, intraindustry trade--where home prices display greater linkage with those of foreign competitors--domestic and export prices exhibit lower pass-through and greater destination-specific adjustment compared to intersectoral trade. With both trade patterns, pricing-to-market behavior intensifies the degree of persistence in the real exchange rate under nominal rigidities, and allows monetary shocks to have permanent effects on relative prices when goods markets remain segmented. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1995/012 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/012/001.1995.issue-012-en.xml IMF e-Library