Publication type: Contribution to magazine or newspaper
Title: 'Natural hedging' of exchange-rate risk: the role of imported input prices
Authors: Fauceglia, Dario
Shingal, Anirudh
Wermelinger, Martin
Published in: VOX: CEPR Policy Portal
Issue Date: 19-Oct-2012
Publisher / Ed. Institution: Centre for Economic Policy Research
Language: English
Subjects: Input price; Import; Hedging; Exchange rate; International trade
Subject (DDC): 337: International economics and commerce
Abstract: Recent literature on the role of imported inputs in exchange-rate adjustments of exports implicitly assumes full exchange-rate pass-through into imported input prices, which is a rather strong assumption. This column uses intermediate input prices to investigate the effect of exchange-rate fluctuations in Switzerland. It suggests an appreciation of the currency leads to higher profit margins through the import channel and imported inputs act as a natural means for hedging exchange-rate risks.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Economic Policy (FWP)
Appears in collections:Publikationen School of Management and Law

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