The openness-inflation puzzle revisited
Abstract: Dynamic panel estimates show the negative relation between trade openness and inflation found by Romer (1993) but questioned by Terra (1998) became more robust in the 1990s, both among high income OECD and developing countries. Also during the 1990s, openness was associated with less variable inflation and had a stronger disinflation effect in economies with floating exchange rates.
File(s): File format is application/pdf http://dallasfed.org/assets/documents/research/claepapers/2003/lawp0302.pdf
Provider: Federal Reserve Bank of Dallas
Part of Series: Center for Latin America Working Papers
Publication Date: 2003