Adjustment To Variations In Imported Input Prices

Download or read book Adjustment to Variations in Imported Input Prices written by Louka T. Katseli and published by . This book was released on 1980 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper introduces an imported input into a model of art open economy with developed financial markets, a flexible exchange rate, and some degree of market power on the export side. The model is designed to investigate the impact of an increase in imported input prices on the exchange rate, domestic interest rate, income and nontraded-goods prices. The analysis reveals that changes in various structural parameters, such as the degree of market power or the extent of demand-side openness" or "financial openness, " alter the transmission of foreign price disturbances to the domestic economy