Bank of England paper explores exchange rate pass-through using ‘big data’
Author explores pass-through to import prices at micro and macro level
The extent to which a change in exchange rate passes through to import prices can depend, at the micro level, on the size of the change, a working paper published by the Bank of England finds.
In What can Big Data tell us about the passthrough of big exchange rate changes?, John Lewis analyses UK data from 1990 to 2012, featuring import volumes and values for around 3,000 types of goods from 45 trading partners.
At the micro level, the author finds the pass-through of larger bilateral exchange
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