Incomplete exchange rate pass through is one reason that a countrys real effective exchange rate can deviate for lengthy periods from its purchasing power equilibrium level of 100 What is meant by the term exchange rate pass through ...

Incomplete exchange rate pass-through is one reason that a countrys real effective exchange rate can deviate for

Question:

Incomplete pass-through is one reason that a country’s real effective can deviate for lengthy periods from its purchasing power equilibrium level of 100. What is meant by the term pass-through?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...