Exchange Rates, U.S. Import Prices, and Antidumping Measures
Over the last two decades, the United States and many other countries have imposed antidumping measures against foreign exporters or domestic importers by using “contemporaneous” exchange rates in determining the fair market value of imports. Prior research has shown that exchange rates impact import prices on a “lagged” basis. This study provides updated empirical evidence on exchange rate pass-through by analyzing quarterly U.S. import prices over the period of 1985:1 – 2010:4. The findings confirm that the influence of currency movements on import prices is, at best, only partial and takes place on a lagged basis. Thus, the method of antidumping initiatives undertaken by the U.S. agencies that relies on complete currency pass-through based on contemporaneous exchange rates is inappropriate.
1 Economic Background and Introduction to the Papers.- 2 The U.S. Basic Industries in the 1980s: Can Fiscal Policies Explain Their Changing Competitive Position?.- Comment.- 3 Policy Implications of the Slowdown in U.S. Productivity Growth.- Comment.- 4 The Tax Reform Act of 1986 and Economic Growth.- Comment.- 5 A Businessman's Perspective on Competitiveness.