Exchange Rate Pass-Through in an Improvement Trade Economy: A DSGE Approach
构建了一个包含加工贸易部门的多国开放经济DSGE模型，基于中国数据模拟发现加工贸易对汇率传递和贸易平衡有显著影响，且定价策略主导了短期马歇尔-勒纳条件。
The paper sets up a multi-country open economy DSGE model with an improvement trade sector to an- alyze exchange rate pass-through. The simulation based on China data shows that the improvement trade sector exhibits a deep impact on exchange rate pass-through and trade balance. Under nominal stickiness setting, ex- change rate changes will change import and exports prices rapidly, then pass to the produce-price-index, and affect the CPI lastly. Pricing-to-market strategies have important effects on this pass-through, especially on the dynamics of import and export prices. Improvement trade challenges the traditional knowledge that apprecia- tion helps diminishing trade surpluses. The simulation shows that pricing strategies govern the short-run Mar- shall-Lerner condition in the improvement trade economy. The necessary condition to ensure the effect of appre- ciation to reduce trade surpluses is that the majority of trade adopts Home country's currency to price.