Overview
The degree of exchange rate pass-through (i.e., variation of export/import and domestic prices with fluctuations in exchange rates) is an important transmission mechanism by which exchange rate fluctuations affect macroeconomic conditions. The objective of this project is to elucidate the following through theoretical and empirical analysis of the microeconomic (corporate) behaviors that determine pass-through (i.e., export/import pricing, choice of invoice currency, and foreign exchange risk management): (i) Measure the pass-through rate in Japan and discuss the effect that incompleteness in the pass-through rate has on macroeconomic policy effects, (ii) Clarify the decisive factors in corporate-level invoice currency selection, foreign exchange risk management, and pricing, (iii) Analyze the effects of deregulation of Japanese capital control in the 1990's on yen-denominated transactions and forecast the effects of easing capital control in emerging countries on the international currency system.
May 30, 2011 - March 31, 2013
Major Research Results
2013
RIETI Discussion Papers
- 13-E-084
"Market Share and Exchange Rate Pass-through: Competition among exporters of the same nationality" (YOSHIDA Yushi) - 13-E-034
"Choice of Invoicing Currency: New evidence from a questionnaire survey of Japanese export firms" (ITO Takatoshi, KOIBUCHI Satoshi, SATO Kiyotaka and SHIMIZU Junko) - 13-E-025
"Exchange Rate Exposure and Exchange Rate Risk Management: The case of Japanese exporting firms" (ITO Takatoshi, KOIBUCHI Satoshi, SATO Kiyotaka and SHIMIZU Junko) - 13-E-024
"Exchange Rate Risk Management of Export Firms: New findings from a questionnaire survey" (ITO Takatoshi, KOIBUCHI Satoshi, SATO Kiyotaka and SHIMIZU Junko) - 13-J-052
"Exchange Rate Pass-through and Market Power: Empirical analysis on Japanese automobile exports" (SASAKI Yuri)
