Skip to main content
Login | Suomeksi | På svenska | In English

Exchange Rate Pass-Through on Finnish Import Prices

Show full item record

Title: Exchange Rate Pass-Through on Finnish Import Prices
Author(s): Zhou, Hanxiao
Contributor: University of Helsinki, Faculty of Social Sciences
Degree program: Master's Programme in Economics
Specialisation: Social Sciences
Language: English
Acceptance year: 2019
The linkage between the import prices and the exchange rate is an important topic in the open economy macroeconomics. However, there is a few literature focusing on the elasticity of the import prices with respect to the exchange rate especially in Finland. The aim of this study is to estimate the Exchange Rate Pass-through (ERPT) on the aggregated Finnish import prices. With the time series of Finnish Import Price Index, the aggregated foreign Producer Price Index and the aggregated foreign exchange rate index from 2001 to 2017, the analysis suggests the short-term ERPT on Finnish import prices is 36.3% and the long-term ERPT is 70.7%. Finland’s domestic demand has little impact on the short-term ERPT on Finnish import prices, while it likely reduces ERPT by 1 to 5 percentage points in long term.
Keyword(s): Exchange Rate Pass-Through Import Price Index Open Economy Macroeconomics

Files in this item

Files Size Format View
zhou_economics.pdf 1.325Mb PDF

This item appears in the following Collection(s)

Show full item record