The main objective of this paper is to investigate the effects of monetary regime (countries with inflation targeting monetary policy versus countries with exchange rate anchor) on the extent of exchange rate pass-through over the period of 1999-2010. To achieve this objective, the econometric model has been estimated by Dynamic Panel Data approach and Arrelano- Bond (AB) method. The empirical findings indicate that the interaction effect of monetary regime with exchange rate has a negative and positive impact on the exchange rate pass-through in first and second groups of countries respectively. However, the cross effect of inflationary environment with nominal effective exchange rate has negative and significant effect on domestic price level in the both groups of countries. Hence, overall, the Taylor hypothesis has been confirmed.
Feshari, M. and Kazerooni, A. R. (2014). The Impact of Monetary Regime on the Exchange Rate Pass-Through under Inflationary Environment (Dynamic Panel Data Approach). International Economics Studies, 44(1), 27-36. doi: 10.22108/ies.2014.15577
MLA
Feshari, M. , and Kazerooni, A. R. . "The Impact of Monetary Regime on the Exchange Rate Pass-Through under Inflationary Environment (Dynamic Panel Data Approach)", International Economics Studies, 44, 1, 2014, 27-36. doi: 10.22108/ies.2014.15577
HARVARD
Feshari, M., Kazerooni, A. R. (2014). 'The Impact of Monetary Regime on the Exchange Rate Pass-Through under Inflationary Environment (Dynamic Panel Data Approach)', International Economics Studies, 44(1), pp. 27-36. doi: 10.22108/ies.2014.15577
CHICAGO
M. Feshari and A. R. Kazerooni, "The Impact of Monetary Regime on the Exchange Rate Pass-Through under Inflationary Environment (Dynamic Panel Data Approach)," International Economics Studies, 44 1 (2014): 27-36, doi: 10.22108/ies.2014.15577
VANCOUVER
Feshari, M., Kazerooni, A. R. The Impact of Monetary Regime on the Exchange Rate Pass-Through under Inflationary Environment (Dynamic Panel Data Approach). International Economics Studies, 2014; 44(1): 27-36. doi: 10.22108/ies.2014.15577
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