Learn how overshooting impacts exchange rate volatility and why Dornbusch’s model is pivotal in explaining the short-term departure from price equilibrium.

Exchange rate pass‐through refers to the extent to which fluctuations in the nominal exchange rate affect domestic prices—both at the producer and consumer levels. This dynamic plays a pivotal role in ...

International Economics examines the cross‐border flow of goods, services, capital and information, shaping how nations interact within an increasingly interdependent global economy. Its scope extends ...