Séminaire - "Low pass-through and high spillovers in NOEM: what does help and what does not",par Grégory de Walque (National Bank of Belgium)

Seminar in Economics

Abstract: 

This paper jointly analyses two major challenges of the canonical NOEM model: i) combining a relatively important exchange rate pass-through at the border with low pass-through at the consumer level, and ii) generating significant endogenous international business cycle synchronization. We show that introducing input trade for price-maker firms rehabilitate the model regarding the pass-through disconnect, while adding a distribution sector lacks flexibility to do so. Moreover, these two extensions of the canonical model mitigate the expenditure switching effect, with implications in terms of international synchronization

 

Contact : Romain Houssa - romain.houssa@unamur.be
Télecharger : vCal