Exchange Rate Pass-Through and Unemployment Dynamics

Chak Hung J. Cheng
Additional contact information
Chak Hung J. Cheng: Assistant Professor of Economics, Department of Economics and Finance, Murray State University, United States

International Journal of Business and Social Research, 2013, vol. 3, issue 8, 1-17

Abstract: This paper develops a small open economy model with nominal rigidities and search-matching frictions to study the implications of incomplete exchange rate pass-through for unemployment dynamics. The model shows that incomplete exchange rate pass-through to the prices of imported goods has a larger impact on unemployment movements than does incomplete pass-through to the prices of imported inputs. Also, the effect of delayed exchange rate pass-through on unemployment dynamics depends critically on the nature of the shock that disturbs the economy.

Keywords: exchange rate pass-through; unemployment; search and matching frictions (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://thejournalofbusiness.org/index.php/site/article/view/284 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mir:mirbus:v:3:y:2013:i:8:p:1-17

Access Statistics for this article

More articles in International Journal of Business and Social Research from MIR Center for Socio-Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by M Kabir ().