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A Tale of Two Cities Revisited: Pass-through in Hong Kong & Singapore

Colorado College Working Paper No. 2006-04

30 Pages Posted: 4 Sep 2006  

Amit Ghosh

Colorado College Department of Economics and Business

Ramkishen S. Rajan

ESSEC Business School

Date Written: August 2006

Abstract

This paper compares the extent of exchange rate pass-through at the aggregate level into CPI and import prices in Singapore and Hong Kong for the period 1980 to 2005. A priori one might expect that these two economies which have relatively small markets and are highly open with high degree of dependence on foreign goods for domestic consumption, will be faced with relatively high exchange rate pass-through. Results suggest that exchange rate pass-through in Hong Kong is higher than in Singapore. The paper further examines whether pass-through has changed over time in the two economies.

Keywords: Exchange Rate Hong Kong, Pass-through (ERPT), Market share, Singapore

JEL Classification: E31, F41

Suggested Citation

Ghosh, Amit and Rajan, Ramkishen S., A Tale of Two Cities Revisited: Pass-through in Hong Kong & Singapore (August 2006). Available at SSRN: https://ssrn.com/abstract=927971 or http://dx.doi.org/10.2139/ssrn.927971

Amit Ghosh (Contact Author)

Colorado College Department of Economics and Business ( email )

14 East Cache La Poudre Street
Colorado Springs, CO 80903

Ramkishen S. Rajan

ESSEC Business School ( email )

5 Nepal Park
Singapore, 139408
Singapore

HOME PAGE: http://https://sites.google.com/site/ramkishenrajan/

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