Template-Type: ReDIF-Paper 1.0
Author-Name: David C. Parsley
Title: Exchange Rate Passthrough in South Africa Panel Evidence from Individual Goods and Services
Abstract: This study estimates pass-through for South Africa using samples of final goods and services, and homogenous imports. Estimated pass-through to consumer goods prices is low, roughly 16 percent in the two years following an exchange rate change; surprisingly, it is somewhat higher for services. Deviations from long run PPP appear to disappear relatively quickly, with a half-life of about 16 months. For imports, pass-through estimates are much higher, averaging around 60 percent, but with wide source-country variation. Finally, there is virtually no support for a simple linear trend change in either pass-through or in reversion to PPP during the sample.
Creation-Date: 2010-01-29
File-URL: http://www.resbank.co.za/content/dam/sarb/publications/working-papers/2010/3580/wp1003.pdf
File-Format: application/pdf
File-Function: Revision
Number: 3580
Handle: RePEc:rbz:wpaper:3580