RESEARCH ARTICLE · Federal Reserve Bank of San Francisco, Working Paper Series · 2008

The Adjustment of Global External Balances: Does Partial Exchange Rate Pass-Through to Trade Prices Matter?

Federal Reserve Board, Christopher J. Gust, Sylvain Leduc, Federal Reserve Bank of San Francisco, Nathan Sheets, Federal Reserve Board

Read original paper ↗

See where this research leads.

A citation map has not been saved for this paper yet.

Open in your workspace →Open your workspace to prepare the citation network.

The paper record is available below. Preparing a network uses the existing account and source-allowance controls.

Papers that cite this work

No saved citation network is available; this does not mean the paper has no citations.

The evidence behind the map

Publication record

Research article.

Abstract

This paper assesses whether partial exchange rate pass-through to trade prices has important implications for the prospective adjustment of global external imbalances. To address this question, we develop and estimate an open-economy DGE model in which pass-through is incomplete due to the presence of local currency pricing, distribution services, and a variable demand elasticity that leads to fluctuations in optimal markups. We find that the overall magnitude of trade adjustment is similar in a low and high pass-through world with more adjustment in a low pass-through world occurring through a larger response of the exchange rate and terms of trade rather than real trade flows.

Coverage and freshness

Citation coverage has not been established for this paper.

Counts describe saved source records; repository versions may appear separately. A completed source query is not a complete or live citation census. A citation does not prove endorsement or research quality. Counts depend on publication age and index coverage. Colors identify research areas; positions are for readability.

Source: Saved OpenAlex scholarly metadata. Visits to this public page do not acquire new provider data.

Report a correction