How Do Exchange Rates Affect Import Prices? Recent ...

How Do Exchange Rates Affect Import Prices? Recent Economic Literature and Data AnalysisNo. ID-21 OFFICE OF INDUSTRIES WORKING INTERNATIONAL TRADE COMMISSIONC athy L. JabaraOffice of International Trade CommissionMay 2009 Cathy Jabara is a Senior Economist with the Office of Industries of the International Trade of Industries working papers are the result of the ongoing professional research of USITC Staff andare solely meant to represent the opinions and professional research of individual authors. These papers arenot meant to represent in any way the views of the International Trade Commission or any of itsindividual Commissioners. Working papers are circulated to promote the active Exchange of ideas betweenUSITC Staff and recognized experts outside the USITC, and to promote professional development of Officestaff by encouraging outside professional critique of staff research.

change in the import price. A number of exchange-rate pass-through studies have shown that pass-through to U.S. import prices2 is quite low, and some argue that it has declined in recent years.3 In addition, pass-through to import prices in many major U.S. trading partners has also been estimated to be

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