Authors
1 Assistant Professor, University of Isfahan
2 PhD student in Economics, University of Isfahan
Abstract
In the literature of international economics, determination of exchange rate pass- through has been closefy related to main determinants, and to its impacts on other economic variables. In principle, exchange rate pass-through is defined as a change in exchange rate as a result of a change in prices of imported goods. The pass-through is generally measured based on the responsiveness of the import price index to changes in real exchange rate. In accordance with fluctuations in foreign exchange and the exchange rate, this paper attempts to explore the importance of exchange rate pass-through in the Iranian economy. origenaly, a theoretical discussion of the exchange rate pass-through is reviewed, and then, by using Neuro-Fuzzy Systems its situation in Iran is analyzed. In addition, empirical models of import prices and exchange rate are specified for the Iranian economy to examine the impacts of monetary and foreign exchange policies, as well as the degree of economic opennness on exhang rate pass-through in Iran. The models are also estimated and evaluated by the Neuro-Fuzzy Systems. In general, the results obtained indicate that the conduction of all mentioned policies has significant and positive effects on the pass-through status. In addition, the method used is a more efficient and reliable instrument in forecasting the trends of the exchange rate and the price variables
Keywords
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