Abstract. The resilience of trade balances of the major industrialized economies to changes in their exchange rates has evoked interest in the exchange rate pass-through relationship. So far, there has not been a comprehensive survey of this literature. The paper aims to fill this gap in two ways. First, it pieces together the theoretical literature on exchange rate pass-through. Second, it provides a critical survey of the empirical literature on exchange rate pass-through. Emphasis is placed on the data and methodology employed in previous work. This is done in order to guide future work in this growing area of research.