Richhild Moessner

Exchange Rate Pass-Through

In a recent paper, Richhild Moessner studied how exchange rate pass-through to consumer price inflation has changed since the global financial crisis, yielding three main findings. First, exchange rate pass-through in emerging economies decreased after the financial crisis, while exchange rate pass-through in advanced economies has remained relatively low and stable over time. Second, the declining pass-through in emerging markets is related to declining inflation. Third, it is important to control for non-linearities when estimating exchange rate pass-through. These results hold for both short-run and long-run pass-through and remain robust to extensive changes in the specifications.

Ms Moessner’s research interests include monetary policy, macroeconomics and international finance. While at CESifo, Ms Moessner plans to study the effects of the announcements of asset purchases by the European Central Bank on government bond term premia in eleven euro area countries. In the wake of the global financial crisis, several central banks in advanced economies, including the ECB, introduced large-scale asset purchases as unconventional monetary policy measures in order to reduce long-term interest rates and stimulate the economy.

Richhild Moessner is a senior economist in the Monetary and Economic Department at the Bank for International Settlements. She has previously worked as a senior economist and manager at the Bank of England, as a senior economist in the ECB’s research department, and as a senior policy advisor in the Economics and Research Division of the Dutch Central Bank.