Exchange rate pass-through and Southeast European economies

This paper investigates the exchange rate pass-through effect (ERPT) on the aggregate import prices within seven countries of Southeast Europe. The main goal is to investigate whether there is a high, as well as a complete pass-through effect in the short-term and long-term for Croatia, Bulgaria, Romania and Slovenia. Compared to the previous survey results, it is found that the “pass-through” is not reduced. On the other hand, the results confirmed the previous results, according to which pass-through effect is higher in transitional countries than in developed countries. In addition, in the short and long term, depreciation leads to the “pass through” asymmetry for Croatia, Bulgaria, FYR Macedonia and Slovenia, while appreciation leads to the “pass-through” asymmetry for Slovenia.