Effects of U.S. Inflation on Hong Kong and Singapore

Cheung, Yin‐Wong; Yuen, Jude

doi:10.2139/ssrn.312126

Cited by 5 publications

(3 citation statements)

References 8 publications

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“…One percentage point increase in foreign prices causes prices in Mauritius to increase by 0.006%. This outcome is in line with the findings of Crowder (1996), Cheung and Yuen (2002) and Feyzialu and Willard (2006), who showed that inflation was transmitted from the US to the rest of the world. Bergin (2003), on the other hand, reported that foreign prices have little effect on Australia's inflation rate.…”

Section: Vecm Estimates Of the Pass-through Effectssupporting

confidence: 90%

Analysing the Exchange Rate-Inflation Nexus: Evidence From Mauritius

Babubudjnauth¹,

Seetanah²

2022

IJABER

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This paper examines the degree and speed of exchange rate passthrough (ERPT) to the inflation rate in Mauritius from 1980 to 2016 using dynamics regression analysis. Results reveal that the long-run ERPT elasticity to domestic inflation is incomplete and low. However, no such relationship is discovered in the short run. The speed of adjustment of actual inflation to its long-run equilibrium level is quite high and it takes approximately two years to attain that level. From a policy point of view, domestic inflation can be tamed by tightening the domestic money supply and maintaining exchange rate stability in the long run.

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Section: Vecm Estimates Of the Pass-through Effectssupporting

confidence: 90%

Analysing the Exchange Rate-Inflation Nexus: Evidence From Mauritius

Babubudjnauth¹,

Seetanah²

2022

IJABER

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“…Although not emphasized in the media, this result should not be surprising, as China's imports from the United States have been growing strongly for more than a decade. The finding that inflation developments in the United States affect China (which has a stable exchange rate against the dollar for a significant part of the sample) is also consistent with the findings of Crowder (1996) and Cheung and Yuen (2002) that during the fixed exchange rate period, inflation was transmitted from the reserve country (the United States) to the other countries.…”

Section: A a Simple Model Of Inflationsupporting

confidence: 82%

“…In particular, during the Bretton Woods period, inflation was transmitted from the reserve currency nation to the rest of the world, while after this period, inflation was transmitted from all countries in the sample. Cheung and Yuen (2002) find that United States inflation has a strong impact on inflation in Hong Kong SAR and a much milder impact on inflation in Singapore. Bergin (2003), on the other hand, finds that foreign prices have little impact on the Australian economy.…”

mentioning

confidence: 85%