Openness and Inflation in Iran

Ahmad Jafari Samimi, Saman Ghaderi and Bahram Sanginabadi

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract-The purpose of this paper is to test the hypothesis first documented by [1], that inflation is lower in more open economies. According to this hypothesis, central banks have a smaller incentive to engineer surprise inflations in more-open economies because the Phillips curve is steeper. We utilized the ARDL Bounds test approach to level relationship proposed by [2] for Iranian annual data over the period 1973-2007. Results from Bounds test approach confirm existence of long-run relationship among the variables under consideration. The results show that openness has negative and significant effect on inflation in short-run but its effect in long-run is not significant.

Keywords: Keywords-Openness; Inflation; Iran; ARDL Bounds test approach. (search for similar items in EconPapers)
JEL-codes: E0 E00 E31 (search for similar items in EconPapers)
Date: 2011-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:52408

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