For example, one study by Marazzi and Sheets (2007) found that the average cumulative response of the U.S. import price index to an exchange rate change declined from around 0.5 in the 1970s and 1980s to around 0.2 in the past decade.
5 The decline in responsiveness is especially apparent in finished goods, including consumer goods, capital goods excluding computers and semi-conductors, and automotive products (Gust, Leduc, and Vigfusson, 2006). Evidence also suggests that pass-through to import prices in many major U.S. trading partners is well below unity, even if typically somewhat higher than in the United States.