Despite the increased price of raw materials, we want khổng lồ avoid pass-through or we risk losing customers.


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an arrangement in which a financial organization buys loans from a bank & sells bonds representing these loans khổng lồ investors. The payments on the loans are then used to lớn pay interest lớn the investors và pay bachồng the bonds:
This paper analyzes exchange-rate dynamics following a money-based disinflation under different degrees of exchange-rate pass-through.
Figure 1 shows results for s = 0.5 (the plot with stars) and s = 1.0 (the plot with diamonds), both cases representing incomplete pass-through.
However, while the pass-through is high, complying with this objective implies achieving a stable exchange rate.
For an exchange-rate-based policy, the degree of exchange-rate pass-through makes little difference to the impact of a disinflation.
Nominal stability will remain under question until the high inflationary pass-through of depreciation has been eliminated.
Analyzing the effects of disinflation under incomplete pass-through, however, significantly alters the magnitudes of these effects.
Figure 1 shows that the responses of the exchange rate và many other variables are significantly different when there is incomplete pass-through.


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So, even when s = 1, there is some degree of pass-through from exchange-rate changes khổng lồ consumer prices.
This paper analyzes exchange-rate dynamics following a money-based disinflation under different degrees of exchange rate pass-through.
If there are no movements in the nominal exchange rate, then the presence, or indeed the extent, of pass-through becomes irrelevant.
Figure 2 shows the effects of reducing the degree of price inertia also for the incomplete pass-through cases.
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