Openness and the Output-Inflation Tradeoff

Christopher Bowdler ()

No 2003-W04, Economics Papers from Economics Group, Nuffield College, University of Oxford

Abstract: 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.

Keywords: Openness; Inflation; Phillips curve (search for similar items in EconPapers)
JEL-codes: E31 E32 F41 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2003-02-20
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Openness and the output-inflation tradeoff (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:nuf:econwp:0304

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