degré de transmission de la dévaluation

English translation: Percentage of the devaluation pass-through

01:11 Jan 31, 2024
French to English translations [PRO]
Bus/Financial - Economics
French term or phrase: degré de transmission de la dévaluation
Hi all,

I'm translating an economist's report about Argentina from French (France) to English (United Kingdom) and am having trouble with the phrase above. Please see below for context:

"Avant la dévaluation, l’inflation était déjà en forte accélération (+11% par mois en moyenne entre août et novembre contre 7% entre janvier et juillet), malgré le contrôle des augmentations de prix mis en place par le gouvernement précédent. En décembre, la hausse a atteint 25,5% sur un mois et 211,4% sur un an, la dévaluation et la fin du contrôle des prix ayant déclenché une vague de rattrapage, notamment des prix des carburants (+47,7% sur un mois) et de ceux de l’alimentation (+29,7%). Au S1 2024, l’inflation va rester très forte car les rattrapages vont se poursuivre (d’après les calculs de JP Morgan, le degré de transmission de la dévaluation n’aurait été que de 30% jusqu’à maintenant) et les prix règlementés, qui représentent 16% du panier de consommation, vont être fortement revalorisés en raison de la baisse des subventions."

Could anyone help please? Many thanks
Matt Valentine
United Kingdom
Local time: 23:24
English translation:Percentage of the devaluation pass-through
Explanation:
Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates.

Formally, exchange-rate pass-through is the elasticity of local-currency import prices with respect to the local-currency price of foreign currency. It is often measured as the percentage change, in the local currency, of import prices resulting from a one percent change in the exchange rate between the exporting and importing countries.[1] A change in import prices affects retail and consumer prices. When exchange-rate pass-through is greater, there is more transmission of inflation between countries.[2] Exchange-rate pass-through is also related to the law of one price and purchasing power parity.

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Note added at 1 day 1 hr (2024-02-01 03:08:06 GMT)
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Source: Wikipedia
Selected response from:

Francois Boye
United States
Local time: 18:24
Grading comment
Thanks!
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1Percentage of the devaluation pass-through
Francois Boye
3 +1(so far) only 30% of the monetary devaluation has been passed further
Daryo
3 +1the effect of devaluation passed on so far
SafeTex


Discussion entries: 6





  

Answers


5 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
degré de transmission de la dévaluation ... que de 30%
(so far) only 30% of the monetary devaluation has been passed further


Explanation:
There's no point in dwelling on "degré de transmission" - slavishly cling to being as close as possible to a word for word translation - simpler (and clearer) to look at the whole sentence.

Inflation is like a chain reaction: those impacted either absorb it or - immediately or with a delay - pass it further - by inflating their own prices.

(les) rattrapages vont se poursuivre (d’après les calculs de JP Morgan, le degré de transmission de la dévaluation n’aurait été que de 30% jusqu’à maintenant)
=
the catching up with the inflation will continue ... as only 30% of the received "monetary shock" was passed along further down the chain



Daryo
United Kingdom
Local time: 23:24
Specializes in field
Native speaker of: Native in SerbianSerbian, Native in FrenchFrench
PRO pts in category: 12

Peer comments on this answer (and responses from the answerer)
neutral  philgoddard: Sorry, but this is confusing and ungrammatical.
6 hrs
  -> I the subject matter is not your forte, it will be confusing. Could be expressed in many ways, but you have to have a reliable starting point - to understand what the ST means. I know that it sounds unfinished, that s.t. ought to be after "further".

agree  Peter Moss-Métra: I agree. This is incorrect. It could be, however, "passed on...". But more likely to something along the lines of "fed through to..."
8 hrs
  -> Thanks! Yes "passed on" is better.
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17 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
the effect of devaluation passed on so far


Explanation:
I've reposted as I said "deflation" instead of "devaluation" by mistake in my first answer

Sorry about that

SafeTex
France
Local time: 00:24
Native speaker of: Native in EnglishEnglish

Peer comments on this answer (and responses from the answerer)
agree  Daryo: That's the idea. // A note of caution - the ST seems to be about "devaluation" of the buying power of the currency (a.k.a "inflation"), not "devaluation" of its parity with other currencies.
1 day 6 hrs
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1 day 1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
Percentage of the devaluation pass-through


Explanation:
Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates.

Formally, exchange-rate pass-through is the elasticity of local-currency import prices with respect to the local-currency price of foreign currency. It is often measured as the percentage change, in the local currency, of import prices resulting from a one percent change in the exchange rate between the exporting and importing countries.[1] A change in import prices affects retail and consumer prices. When exchange-rate pass-through is greater, there is more transmission of inflation between countries.[2] Exchange-rate pass-through is also related to the law of one price and purchasing power parity.

--------------------------------------------------
Note added at 1 day 1 hr (2024-02-01 03:08:06 GMT)
--------------------------------------------------

Source: Wikipedia

Francois Boye
United States
Local time: 18:24
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 37
Grading comment
Thanks!

Peer comments on this answer (and responses from the answerer)
neutral  Daryo: could help, but the ST is about domestic prices and domestic inflation.
21 hrs
  -> Any devaluation impacts domestic prices, because an open economy imports inputs and outputs used in the domestic economy.

agree  philgoddard: Not 'percentage of the', though.
1 day 10 hrs
  -> Percentage, because the magnitude of a pass-through is measured in percentage
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