00000nam 2200000zi 4500 9.921958 CaOODSP 20230425152817 m o d f cr |n||||||||| 230425t20232023oncd ob f|0| 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-5/2023-16E-PDF Ellwanger, Reinhard, author. Cost pass-through with capacity constraints and international linkages / by Reinhard Ellwanger, Hinnerk Gnutzmann and Piotr Śpiewanowski. [Ottawa] : Bank of Canada = Banque du Canada, 2023. ©2023 1 online resource (2, 60 pages) : charts. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-16 "Last updated: March 10, 2023." Includes bibliographical references (pages 33-36). "Commodity markets are linked through international trade but are separated by heterogeneous regulations and input markets. We investigate theoretically and empirically how regional, as opposed to global, cost shocks pass through into global prices. Capacity constraints mitigate the output response to regional cost shocks in the short run. Once constraints bind, the pass-through of a cost increase is enhanced while for cost decreases it drops to zero. We study the market for ammonia, a commodity produced largely from natural gas, to highlight the nonlinearity of the cost pass-through and its implications for unilateral climate policies"--Abstract. Includes abstract in French. Climatic changes Economic aspects. Inflation (Finance) Climat Changements Aspect économique. Inflation. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2023-16. (CaOODSP)9.806221 PDF 784 KB https://publications.gc.ca/collections/collection_2023/banque-bank-canada/FB3-5-2023-16-eng.pdf