Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

I suspect that there is, but I confess that I’m not really able to give you the details this morning. We have not attempted to do a major project of that sort. There are two things that have to be immediately taken into account if you’re thinking about some kind of cross-country, or at least non-U.S., look at this. First are the tax features. Many of the other industrial countries have specific taxes, much higher specific taxes, on fuel products of one sort or another, particularly on gasoline but also on other things. Those economies will experience a much smaller percentage change in the wholesale and retail prices for any given change in the crude oil price than we will. The shock is always damped by that on the upside but also on the downside, of course. So that’s a factor that we point to often, and that is why ocular regression kinds of pass-through would make you think that pass-through is less abroad.

Second is the exchange rate effect. If the dollar is trending down a bit, for a short time anyway, it needs to be taken care of in the dynamics of the equation rather than in the structure of the equation because we believe that the dollar oil price adjusts to global demand and supply. But for short episodes in particular, if one thought the dollar was experiencing a spike or a this or a that, then obviously the changes in the exchange value of the dollar look to other countries as a piece of how much oil prices have gone up for them. In general, many countries—say, Japan and, for that matter, even Europe—have a sense that overall the effect is less because their energy intensity is less. They are constantly lecturing us that we consume too much energy. Whether, ceteris paribus, the actual parameter in terms of the price shock really differs I can’t tell you, but the specific taxes and the consequent reduction in energy intensity that they have helped to produce, and other factors that have made them less energy-intensive, do make the problem seem to be smaller in most of the other industrial countries.

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