Sunday, November 18, 2007

Will the declining dollar result in higher import prices?

My colleague David Parsley writes:
The U.S. has one of the lowest 'pass-through' rates of any country, i.e., exchange rate depreciations are not typically passed through to price increases to any great extent. Perahaps a ball park estimate would be from 10-20% only in the short run - say w/in a couple of years.

No comments:

Post a Comment