EconPapers    
Economics at your fingertips  
 

Openness and Inflation: Theory and Evidence

David Romer

The Quarterly Journal of Economics, 1993, vol. 108, issue 4, 869-903

Abstract: Because unanticipated monetary expansion leads to real exchange rate depreciation, and because the harms of real depreciation are greater in more open economies, the benefits of unanticipated expansion are decreasing in the degree of openness. Models in which the absence of precommitment in monetary policy leads to excessive inflation therefore predict lower average inflation in more open economies. This paper tests this prediction using cross-country data. The data show a strong and robust negative link between openness and inflation.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (583)

Downloads: (external link)
http://hdl.handle.net/10.2307/2118453 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Openness and inflation: theory and evidence (1991)
Working Paper: Openness and Inflation: Theory and Evidence (1991) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:108:y:1993:i:4:p:869-903.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2025-03-19
Handle: RePEc:oup:qjecon:v:108:y:1993:i:4:p:869-903.