CHANGES IN THE EXCHANGE RATE AND THE PRICE DYNAMIC IN THE GLOBAL TRIAD COUNTRIES (Zmiany kursu walutowego a dynamika cen w krajach globalnej triady)

The issue concerning the transfer of the exchange rate onto prices has become one of the key research areas within the so-called New Open Economy Macroeconomics. This theme is widely analyzed mainly in foreign literature on macroeconomic as well as on microeconomic levels. The main aim of the article is to present the influence of exchange rate changes on the price dynamic in the Euro-Zone, the USA and Japan. The knowledge concerning impact of the level of exchange rate transfer onto prices allows to assess how exchange rates affect inflation and monetary policy in these countries. The article consists of two parts. The first part deals with theoretical analysis of the phenomenon of incomplete exchange rate transfer onto prices including reasons and factors determining the range of this phenomenon. In addition, in this part, a brief overview of theoretical researches involving this subject has been presented. In the next part of the article, the range of exchange rate transfer onto prices in the 'Global Triad countries' by using the Vector Autoregression Model (VAR) has been analyzed.