Boschen and Weise (Journal of Money, Credit and Banking, (2003)) model the probability of a large upturn in inflation. We extend their work to show that openness to trade exerts a negative effect on the probability of such an event.
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Paper provided by Economics Group, Nuffield College, University of Oxford in its series Economics Papers with number
2004-W11.
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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