What is the extent of exchange rate pass-through in Singapore? Has it changed over time?

摘要

This paper estimates the extent and evolution of exchange rate pass-through into import prices in Singapore for the period 1980 to 2005. Our results indicate that exchange rate pass-through into Singapore's import prices is 25% in the short-run and slightly higher at 29% for the long-run. There is evidence to suggest that the pass-through elasticity has trended downwards from 0.4 in 1983 to around 0.3 by 1987, after which it has remained fairly stable. The paper also examines the macroeconomic determinants of Singapore's exchange rate pass-through.