ABSTRACT
When one contemplates the response of import prices to fluctuations in foreign exchange rates there is an implicit assumption that exchange rates will fluctuate. This assumption would not always be appropriate since there are conditions under which exchange rates fluctuate little, if any. Since the type of exchange rate regime that is prevalent in countries involved in international trade could conceivably affect pass-through behavior, the various types of exchange rate regimes that might be adopted by a country will be discussed prior to the review of conceptual and empirical research dealing specifically with passthrough.
