Does Capital Account Openness Lower Inflation?
Abhijit Sen Gupta
Working Papers from eSocialSciences
This paper investigates the relationship between capital account openness and inflation since the 1980s. It argues that widespread capital account liberalization during the last two decades appears to have contributed to the worldwide disinflation observed during the same period. The paper builds a theoretical model to motivate the presence of a negative link between financial integration and inflation. It tests the prediction of the theoretical model by employing static and dynamic panel data procedures. Financial integration appears to discipline monetary authorities, or to help them convince the private sector that they will be more disciplined in the future. [ICRIER Working Paper 191]
Keywords: capital account openness; inflation; seignorage; discipline effect; Economics; International Economic Relations (search for similar items in EconPapers)
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... s&AId=843&fref=repec
Journal Article: Does capital account openness lower inflation? (2008)
Working Paper: Does Capital Account Openness Lower Inflation? (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:843
Access Statistics for this paper
More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().