Prices more responsive in longer buyer-seller relationships – NY Fed paper

New York skyscrapers and flag

Prices are more responsive to exchange rate shocks when firms have longer trading relationships with one another, a paper published by the Federal Reserve Bank of New York finds.

Sebastian Heise examines how the longevity of relationships between firms affects the pass-through of prices with exchange rate shocks. He uses US importer and foreign exporter data from the last 20 years, amounting to 130 million transactions.

Heise finds price movements in a new relationship reflect an average of 12

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account