TY - BOOK ID - 84542237 TI - Some Implications for Monetary Policy of Uncertain Exchange Rate Pass-Through AU - Hunt, Benjamin. AU - Isard, Peter. PY - 2003 SN - 1462335942 1452757364 1281605697 145189208X 9786613786388 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Inflation KW - Production and Operations Management KW - Macroeconomics KW - General Aggregative Models: Forecasting and Simulation KW - Monetary Policy KW - Open Economy Macroeconomics KW - Price Level KW - Deflation KW - Macroeconomics: Production KW - Currency KW - Foreign exchange KW - Exchange rate pass-through KW - Exchange rates KW - Output gap KW - Exchange rate adjustments KW - Prices KW - Production KW - Import prices KW - Economic theory KW - Imports KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542237 AB - The paper uses MULTIMOD to examine the implications of uncertain exchange rate pass-through for the conduct of monetary policy. From the policymaker's perspective, uncertainty about exchange rate pass-through implies uncertainty about policy multipliers and the impact of state variables on stabilization objectives. When faced with uncertainty about the strength of exchange rate pass-through, policymakers will make less costly errors by overestimating the strength of pass-through rather than underestimating it. The analysis suggests that pass-through uncertainty of the magnitude considered does not result in efficient policy response coefficients that are smaller than those under certainty. ER -