The Inflationary Process in Open Economies

Martin Prachowny

No 52, Working Paper from Economics Department, Queen's University

Abstract: While the concept of "imported inflation" and its relevance for open economies have received considerable attention in the policy-oriented literature, the theoretical underpinnings of this phenomenon have not been constructed as carefully as might be desirable in view of the controversial nature of the subject. The inflationary process can be transmitted to a country by developments in international capital and money markets or through the interaction of goods markets in one country with those of the rest of the world. The debate concerning the former transmission mechanism involves the difficulties in dichotomizing the balance of payments and the domestic money supply through the sterilization of foreign exchange gains or losses. In this paper, major emphasis will be given to the transmission of the inflationary process through the goods and services markets. Primarily,we are interested in investigating the determinants of the rate of inflation for a small country which, because of its size, is forced to accept certain conditions imposed by the external environment.

Pages: 19 pages
Date: 1971-09
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://qed.econ.queensu.ca/working_papers/papers/qed_wp_52.pdf First version 1971 (application/pdf)

Related works:
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:qed:wpaper:52

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().