eprintid: 17061
rev_number: 16
eprint_status: archive
userid: 2744
dir: disk0/00/01/70/61
datestamp: 2014-06-18 11:52:41
lastmod: 2015-04-22 05:23:06
status_changed: 2014-06-18 11:52:41
type: workingPaper
metadata_visibility: show
creators_name: Buzaushina, Almira 
creators_name: Enders, Zeno
creators_name: Hoffmann, Mathias 
title: International Financial Market Integration, Asset Compositions
and the Falling Exchange Rate Pass-Through
subjects: ddc-330
divisions: i-181000
keywords: Exchange rate pass-through, financial integration,portfolio home bias, international price setting
abstract: This paper provides an explanation for the observed decline of the exchange rate pass-through into import prices by modeling the effects of financial market integration on the optimal choice of the pricing currency in the context of rigid nominal goods prices. Contrary to previous literature,
the interdependence of this choice with the optimal portfolio choice of internationally traded financial assets is explicitly taken into account. In particular, price setters move towards more local-currency pricing while the debt portfolio includes more foreign assets following increased financial integration. Both predictions are in line with novel empirical evidence.
date: 2014-06
id_scheme: DOI
id_number: 10.11588/heidok.00017061
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0569
ppn_swb: 1658293762
own_urn: urn:nbn:de:bsz:16-heidok-170618
language: eng
bibsort: BUZAUSHINAINTERNATIO201406
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0569
place_of_pub: Heidelberg
pages: 37
citation:   Buzaushina, Almira  ; Enders, Zeno ; Hoffmann, Mathias   (2014) International Financial Market Integration, Asset Compositions and the Falling Exchange Rate Pass-Through.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/17061/1/Buzaushina_Enders_Hoffmann_2014_dp569.pdf