monetary policies, exchange rate passt-hrough and prices in asian economies: a long and shortrun analysis

The financial crisis in 20072008 has turned into the most farreaching international financial and economic crisis since the great depression. indeed, the crisisaffected asian countries experienced varying degrees of changes in the exchange rate and prices following an initial shock of sharp depreciation of their currencies in the second half of 1997. moreover, questions connected with the exchange rate regime have been an important part of understanding macroeconomic policies and outcomes in asia. thus, the objective of this paper is to examine pass-through effects on domestic prices among the four selected asian countries, japan and s. korea from the east and iran and turkey from the west, with special emphasis on an interaction between prices, monetary policies and exchange rate changes. in order to take into account dynamic effects between these variables, the structural vector autoregression (svar) method is employed, by which the responses of such shocked variables are evaluated during 1970 2015. the empirical results confirmed a dynamic relationship between exchange rate passthrough and other macro variables in the selected countries. also, the results have shown that the passthrough shocks in the shortrun are more effective in the countries which benefit from a managed floating exchange rate regime and inflation targeting policy.