期刊名称：Discussion Paper Series / Universität Heidelberg, Department of Economics
出版年度：2014
出版社：Universität Heidelberg, Department of Economics
摘要：This paper provides an explanation for the observed decline of the exchange rate pass-through into import prices by modeling the effects of financial market integration on the optimal choice of the pricing currency in the context of rigid nominal goods prices. Contrary to previous literature, the interdependence of this choice with the optimal portfolio choice of internationally traded financial assets is explicitly taken into account. In particular, price setters move towards more local-currency pricing while the debt portfolio includes more foreign assets following increased financial integration. Both predictions are in line with novel empirical evidence
关键词：Exchange rate pass-through; financial integration; ; portfolio home bias; international price setting
