How to pronounce“passthrough”in English

Passthrough by definition by construction would equal 1.

Incomplete passthrough again, when we have a flexible prices sort of static setting, it can be attributed to this change in marginal cost or

But because the passthrough is so good that you could walk down the street, being able to now really blend the physical world

And this exchange rate passthrough regression is of course implemented in many different ways and many different levels of aggregation using many different types of data.

where then the passthrough coefficient of interest is this beta.

But with headsets now allowing full-color passthrough-- so that's where you're wearing a VR headset, but you're seeing through the cameras on the outside,

The context of this discussion of exchange rate passthrough in theory would be a discussion of the Real Exchange Rate.

And because as we'll get to in a second passthrough tells us something about how when an exchange rate changes, marginal costs, and markups change.

So of course quite important to think about price stickiness for passthrough.

one-tap defogging, and a passthrough feature just in case someone comes up to you while you're flying.

So if you take and focus just on that traded sector and you think about a typical kind of passthrough relationship.

Now, before I get into kind of how to think in theory about incomplete passthrough, just want to motivate why we might care about it.

And so understanding the nature of that transmission and the extent of that transmission is important and of course very closely related to passthrough.

If you allow for intermediate inputs to be imported from abroad, you can get passthrough to be less than 1 or in the case I just described equal essentially to beta.

There's also investment style models, things that are worth exploring that can cause exchange rate passthrough to be intermediate.

And we find that the answer to that question is yes, it is essentially a 100% passthrough rate.

But yeah, it's, you know, the passthrough cameras are still the same cameras, so it still looks the same.

Turns out there's way less people who wanna spend significant time in a face-computer, even if it's really impressive, even if those pixels with the passthrough mode

But a very long rich history has shown, literature has shown that beta estimates are almost never at one, particularly in the literature looking at passthrough into US import prices.

And finally, the most sort of dry straightforward, I don't mean dry in a negative sense, but the most straightforward interest in exchange rate passthrough.

Okay, so if there's no change in markups, no change in marginal costs, in a static flexible price world, you'll have passthrough equal to 1.

I think Gopinath, Istkhoki and Rigobon, is a very nice implementation of that demand structure to generate incomplete passthrough.

Getting toward the end, but I want to just quickly note again that, in addition to, variable markups generating incomplete passthrough, variable marginal costs can generate incomplete passthrough.

In that case, over the period of time that you don't change, the sticker price of the good passthrough necessarily is zero.

Just kind of wannna note that in a dynamic setting, even above and beyond the price stickiness issues I just described, many other factors can play in and causing complete passthrough.

One might expect mean reversion in the exchange rate shocks, which in a dynamic setting with some price rigidity could cause incomplete passthrough.