A large body of the literature illustrates that the exchange rate pass-through depends on factors such as the monetary policy framework, import composition, trade integration, currency invoicing and the rise of global value chains.5 Broadly speaking, as globalisation has advanced and inflation and inflation volatility have declined, these factors have contributed to progressively reduce the exchange rate pass-through in most developed economies. For example, in the case of the euro area, it has been found that a growing share of local currency pricing has mechanically reduced the pass-through.6 You can see this on slide 2 for the euro area. Today the pass-through to final consumer price inflation may be less than a third of what it was at the beginning of the century. The second reason is more cyclical in nature. It relates to the state of the economy and the response of monetary policy to it. The theory is that exporters will not set their prices as a constant mark-up over costs, but will adjust them to expected changes in their future marginal costs and demand prospects. The implication is that what ultimately matters for the exchange rate pass-through is the type of shock that is hitting the economy. This notion goes back at least to Corsetti and Dedola (2005) but has received more prominence lately following the work of Kristin Forbes and co-authors (2015).7  3 / 14  BIS central bankers' speeches  On the left-hand side of slide 3 you can see initial evidence to support this claim.
Indeed, such is further complicated by the fact that this invisible crime operates on the fringe of society, acting as a bridge between the underworld and the rest. Hence, we need a collaborative approach to work together to overcome such challenges that could damage the image and reputation of Samoa’s financial system, as well as the good standing of NPOs in the country. I now have the pleasure of officially opening this Anti-Money Laundering and Countering Terrorist Financing Activities Workshop. BIS Review 85/2009  5