Quelques aspects de la transmission internationale de l’inflation
AbstractIn the first section, the impact of a shift in international demand on the price level of a small and open economy is analysed in the framework of the IS and LM diagram and under the assumption of a fixed exchange rate; only short run implications are derived from the analysis. In this keynesian context, it is shown, in particular, that the monetary policy implemented by a large country like the U.S. plays an important role in the assessment of the static short run impact of a change in international demand on the price level of a small country like Canada. In the second section of the paper, it is shown that a dynamic version of a keynesian macro model allows the rate of growth of prices of a small country to converge to the "international rate of inflation". In the last section, longer term issues are discussed in the context of the Scandinavian model of inflation. In particular, it is shown that a country like Canada with large regulated and para-public sectors is quite vulnerable to external inflationary shocks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Société Canadienne de Science Economique in its journal L'Actualité économique.
Volume (Year): 54 (1978)
Issue (Month): 2 (avril-juin)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Branson, William H, 1975. "Monetarist and Keynesian Models of the Transmission of Inflation," American Economic Review, American Economic Association, vol. 65(2), pages 115-19, May.
- Dunn, Robert M, Jr, 1970. "Flexible Exchange Rates and Oligopoly Pricing: A Study of Canadian Markets," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 140-51, Jan.-Feb..
- David Laidler, 1976. "The Exchange Rate Regime and the Conduct of Anti-Inflation Policy," Working Papers 232, Queen's University, Department of Economics.
- Kouri, Pentti J K & Porter, Michael G, 1974. "International Capital Flows and Portfolio Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 443-67, May/June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruce Shearer).
If references are entirely missing, you can add them using this form.