Inflation and Foreign Trade

The study is dedicated to the interplay between foreign trade and inflation in a multi-layered and method-rich, but at the same time coherent manner. The analysis is carried out at both macroeconomic and company level. We analyse the interactions between inflation and foreign trade in terms of their macroeconomic causes, the role of market openness and exchange rates, the evidence at the firm level and the effects of economic policy measures. The diversity of the underlying research questions necessitates the use of a wide variety of analytical tools. These range from econometric approaches such as vector autoregressions, local projections and gravity models to theoretically based equilibrium models and simulations with established model solutions from renowned external institutions such as Oxford Economics and the International Monetary Fund.