Search: ECM
RBA Glossary definition for ECM
ECM – Error-correction ratio
Search Results
Introduction
1 Jul 2016
RDP
2016-05
Our findings of highly persistent deviations from the law of one price imply a very slow speed of adjustment in aggregate error correction models (ECMs) of import prices. ... the ECM they use imposes the law of one price, first-stage pass-through is
https://www.rba.gov.au/publications/rdp/2016/2016-05/introduction.html
Trade Invoicing Currency and First-stage Exchange Rate Pass-through
1 Jun 2016
RDP
2016-05
Our findings of highly persistent deviations from the law of one price imply a very slow speed of adjustment in aggregate error correction models (ECMs) of import prices. ... the ECM they use imposes the law of one price, first-stage pass-through is
https://www.rba.gov.au/publications/rdp/2016/2016-05/full.html
Implications
1 Jul 2016
RDP
2016-05
Our results imply that the speed of adjustment in an ECM framework for exchange rate changes to import prices would be very slow for Australian dollar-invoiced trade.
https://www.rba.gov.au/publications/rdp/2016/2016-05/implications.html