(WP19/2017) Asymmetric Exchange Rate Pass-Through: Evidence From The Philippines
Exchange rate pass-through (ERPT) measures the effect on inflation of the changes in the exchange rate. In contrast to the relative richness of available literature on ERPT, more recent studies that explore possible asymmetric and non-linear characteristic of ERPT especially in the Philippines are not yet available. Exchange rate pass-through coefficients generated from linear modelling techniques may be imprecise but not implausible. Thus, this paper examines whether the response of inflation is asymmetric across depreciation and appreciation episodes.
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