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More on Reinvestment Phase

EUROZONE DATA: ### The EUR trade-weighted FX rate has risen just over 8% since
April of this year and is at new one year highs today. The question is clearly
how this influences HICP.
- There are a number of studies that come to surprisingly similar conclusions
and are summarised in the 2016 ECB Working Paper, "Exchange rate pass-through in
the euro area" by Comunale and Kunovac as follows for for a 1% appreciation of
the TWI the 1 year and 3 year effects:
- Hahn 2003 1Y: -0.10%, 3Y -0.23%
- Comunale and Kunovac 1Y: -0.11%, 3Y -0.12%
- ECB New Area-Wide Model 1Y -0.02, 3Y -0.20%
- ECB New Multi Country Model 1Y -0.09, 3Y -0.25%