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Openness and the Output-Inflation Tradeoff Author info | Abstract | Publisher info | Download info | Related research | Statistics Christopher Bowdler () (Nuffield College, Oxford )
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Standard open economy models predict that openness to trade should exert a positive effect on the slope of the output-inflation tradeoff, or Phillips curve, but such a proposition finds very little support in the existing empirical literature. We propose a new test of this hypothesis based on new measures of the slope of the Phillips curve and more general cross-country regression models. The results provide strong empirical support for the standard theoretical prediction.
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Paper provided by Economics Group, Nuffield College, University of Oxford in its series Economics Papers with number
2003-W04.
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Length: 28 pages
Date of creation: 20 Feb 2003Date of revision:
Handle: RePEc:nuf:econwp:0304Contact details of provider: Web page: http://www.nuff.ox.ac.uk/economics/
For technical questions regarding this item, or to correct its listing, contact: (Maxine Collett).
Keywords: Openness ; Inflation ; Phillips curve ; Other versions of this item:
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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references Cited by : (explanations , 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.)
William C. Gruben & Darryl McLeod, 2003.
"The openness-inflation puzzle revisited ,"
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0203, Federal Reserve Bank of Dallas.
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"Openness, exchange rate regimes and the Phillips curve ,"
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2005-W25, Economics Group, Nuffield College, University of Oxford.
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