This paper is a remarkable attempt to take seriously the financial accelerator mechanism in an open economy and confront it to the data. The authors basically extend the Bernanke, Gertler, and Gilchrist (2000) model to a small open economy. The two main ingredients are financially constrained entrepreneurs, introducing a financial accelerator mechanism, and sticky prices, giving a role to monet...

the main objective of this paper is to investigate the impact of exchange rate pass-through on consumer prices under exchange rate misalignment in iran during 1353-1387. for this purpose, the exchange rate misalignment has been extracted using ardl method and then the effect of exchange rate and exchange rate misalignment on cpi has been estimated. the results show that the degree of exchange r...

We document new facts on international relative price movements using wholesale price data for common products sold in Canada and United States over the period 2004-2006, and information on the country of production for individual products. We find that international relative prices at the level of individual products are roughly three to four times as volatile as the Canada-US nominal exchange...