چکیده:
Exchange rate is an important factor influencing price indices of exported goods of a country in different ways. Imported intermediate commodity is one of the important ways by which the change in exchange rate affects price indices of the exported goods. Using the input-output table of Iran for the year 2001, this paper investigates the impact of exchange rate devaluation on price indices of exported goods in Iran. The results of the research indicate that, when all agents do not adjust their earnings exactly with respect to price indices of products, the exchange rate pass-through is partial; therefore the increment in the level of exported prices is less than that of exchange rate variation. In contrast, when all agents adjust their earnings with respect to price indices, the price indices of all products will increase as much as exchange rate variation, hence, the pass-through is complete, and as a result, the current devaluation policy is neutral.
خلاصه ماشینی:
Using the input-output table of Iran for the year 2001, this paper investigates the impact of exchange rate devaluation on price indices of exported goods in Iran.
The results of the research indicate that, when all agents do not adjust their earnings exactly with respect to price indices of products, the exchange rate pass-through is partial; therefore the increment in the level of exported prices is less than that of exchange rate variation.
In contrast, when all agents adjust their earnings with respect to price indices, the price indices of all products will increase as much as exchange rate variation, hence, the pass-through is complete, and as a result, the current devaluation policy is neutral .
In contrast to most previous studies in Iran that were based on a time series method, this research examines the relationship between exchange rate and Exported Goods’ Price Index (EGPI) through applying the input-output table of Iran for the year 2001.
This model runs 90/ The Impact of Exchange Rate Devaluation on Price Indices … based on the I-O table adjustment due to an initial shock in value added components through several iterations.
For instance, in the case in which wages are adjusted with respect to Consumer Price Index (CPI), Ak, the adjustment coefficient for the kth iteration of adjustment, is calculated through the Laspeyres price index: {مراجعه شود به فایل جدول الحاقی} g and (1-g) denote the share of households’ consumption expenditure in domestic and imported products before exchange rate shock, respectively.