01763cas a2200253 a 4500 AALejournalIMF005328 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870718 1018-5941 BD-DhAAL BD-DhAAL Cook, David. New Keynesian Exchange Rate Pass-Through / David Cook, Woon Choi. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (25 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 Using the theory of optimal local currency pricing, this paper constructs a structural equation to estimate the rate at which foreign producer prices pass through the local currency prices of imported goods in the U.S. This can be viewed as measuring exchange rate pass-through, in line with price stickiness in the New Keynesian Phillips curve literature. We estimate the structural equation using the generalized methods of moments for consistent estimates of exchange rate pass-through. We find that a model with a mix of local currency pricing and producer currency pricing fits the data best. The estimate of price stickiness in import prices is comparable to existing estimates of domestic price stickiness. Mode of access: Internet Choi, Woon. IMF Working Papers; Working Paper ; No. 2008/213 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/213/001.2008.issue-213-en.xml IMF e-Library