Is pass-through of the exchange rate to restaurant and hotel prices asymmetric in the US? Role of monetary policy uncertainty

Abstract

Highlights The drivers of restaurant and hotel business in tourism destinations are examined. There is asymmetric pass-through of exchange rate and monetary policy uncertainty. A stronger pass-through is observed during appreciation and a negative shock to monetary policy uncertainty. There is asymmetric causality from positive shock in exchange rate to postive shock in restaurant and hotel prices.

Keywords

• Restaurant and hotel prices
• Exchange rate
• Monetary policy uncertainty
• Energy price index
• US economy