Exchange rates, tariffs and prices in 1930s Britain
Chadha, J. S., Lennard, J.
, Solomou, S. & Thomas, R.
(2024).
Exchange rates, tariffs and prices in 1930s Britain.
In
Clavin, P., Corsetti, G., Obstfeld, M. & Tooze, A.
(Eds.),
Keynes's Economic Consequences of the Peace after 100 Years: Polemics and Policy
(pp. 325 - 363).
Cambridge University Press.
https://doi.org/10.1017/9781009407540.015
, Solomou, S. & Thomas, R.
(2024).
Exchange rates, tariffs and prices in 1930s Britain.
In
Clavin, P., Corsetti, G., Obstfeld, M. & Tooze, A.
(Eds.),
Keynes's Economic Consequences of the Peace after 100 Years: Polemics and Policy
(pp. 325 - 363).
Cambridge University Press.
https://doi.org/10.1017/9781009407540.015
This chapter investigates the degree of pass-through from import prices and tariffs to wholesale prices in interwar Britain using a new high-frequency micro data set. The main results are: (i) Pass-through from import prices and tariffs to wholesale prices was economically and statistically significant. (ii) Despite devaluation, import prices exacerbated deflation in the early 1930s because of the global slump in export prices. (iii) Rising protection, however, was a mild stimulus to prices during the shift to inflation.