International Economics and Economic Policy vol:10 issue:3 pages:405-425
This paper studies the exchange rate pass-through in the Syrian economy over the period 1990Q1-2009Q4. To this end it constructs a cost of imports indicator which is used in an Autoregressive Distributed Lag (ARDL) approach. The findings point to a high and fast exchange rate pass-through effect. As a consequence, Syrian macro-economic performance is very sensitive to international price evolutions as well as depreciations of the Syrian Pound.