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- Title
Exchange Rates and Prices: Evidence from the 2015 Swiss Franc Appreciation.
- Authors
Auer, Raphael; Burstein, Ariel; Lein, Sarah M.
- Abstract
We dissect the impact of a large and sudden exchange rate appreciation on Swiss border import prices, retail prices, and consumer expenditures on domestic and imported nondurable goods, following the removal of the EUR/CHF floor in January 2015. Cross-sectional variation in border price changes by currency of invoicing carries over to consumer prices and allocations, impacting retail prices of imports and competing domestic goods, as well as import expenditures. We provide measures of the sensitivity of retail import prices to border prices and the sensitivity of import shares to relative prices, which is higher when using retail prices than border prices. (JEL E21, E31, F14, F31, L11)
- Subjects
SWISS franc; FOREIGN exchange rates; IMPORTS; NONDURABLE goods; PRICES; CONSUMPTION (Economics)
- Publication
American Economic Review, 2021, Vol 111, Issue 2, p652
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.20181415