Despite the increased price of raw materials, we want khổng lồ avoid pass-through or we risk losing customers.

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an arrangement in which a financial organization buys loans from a bank and sells bonds representing these loans khổng lồ investors. The payments on the loans are then used to lớn pay interest to lớn the investors và pay back the bonds:
This paper analyzes exchange-rate dynamics following a money-based disinflation under different degrees of exchange-rate pass-through.
Figure 1 shows results for s = 0.5 (the plot with stars) and s = 1.0 (the plot with diamonds), both cases representing incomplete pass-through.
However, while the pass-through is high, complying with this objective sầu implies achieving a stable exchange rate.
For an exchange-rate-based policy, the degree of exchange-rate pass-through makes little difference lớn the impact of a disinflation.
Nominal stability will remain under question until the high inflationary pass-through of depreciation has been eliminated.
Analyzing the effects of disinflation under incomplete pass-through, however, significantly alters the magnitudes of these effects.
Figure 1 shows that the responses of the exchange rate and many other variables are significantly different when there is incomplete pass-through.

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So, even when s = 1, there is some degree of pass-through from exchange-rate changes lớn consumer prices.
This paper analyzes exchange-rate dynamics following a money-based disinflation under different degrees of exchange rate pass-through.
If there are no movements in the nominal exchange rate, then the presence, or indeed the extent, of pass-through becomes irrelevant.
Figure 2 shows the effects of reducing the degree of price inertia also for the incomplete pass-through cases.
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