Openness, exchange rate regimes and the Phillips curve.
Recent research suggests that the Phillips curve slope, measured using sacrifice ratios from the period 1961–88, is positively related to trade openness, contradicting the Romer [1993. Openness and inflation: theory and evidence. Quarterly Journal of Economics 108, 869–903.] hypothesis that disinfla...
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| Format: | Journal article |
| Language: | English |
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Elsevier
2009
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| _version_ | 1826273725199155200 |
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| author | Bowdler, C |
| author_facet | Bowdler, C |
| author_sort | Bowdler, C |
| collection | OXFORD |
| description | Recent research suggests that the Phillips curve slope, measured using sacrifice ratios from the period 1961–88, is positively related to trade openness, contradicting the Romer [1993. Openness and inflation: theory and evidence. Quarterly Journal of Economics 108, 869–903.] hypothesis that disinflations are less costly in open economies. In this paper I consider sacrifice ratios and output–inflation trade-offs from 1981–98 and allow their dependence on openness to vary with the exchange rate regime. Sacrifice ratios are weakly negatively related to openness, but the strength of the relationship does not increase with exchange rate flexibility. Output–inflation trade-offs are negatively related to openness, and the strength of the relationship increases with exchange rate flexibility. |
| first_indexed | 2024-03-06T22:32:35Z |
| format | Journal article |
| id | oxford-uuid:58c3bf9b-3b3b-445a-85aa-196c49cefbd7 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:32:35Z |
| publishDate | 2009 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:58c3bf9b-3b3b-445a-85aa-196c49cefbd72022-03-26T17:05:43ZOpenness, exchange rate regimes and the Phillips curve.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:58c3bf9b-3b3b-445a-85aa-196c49cefbd7EnglishDepartment of Economics - ePrintsElsevier2009Bowdler, CRecent research suggests that the Phillips curve slope, measured using sacrifice ratios from the period 1961–88, is positively related to trade openness, contradicting the Romer [1993. Openness and inflation: theory and evidence. Quarterly Journal of Economics 108, 869–903.] hypothesis that disinflations are less costly in open economies. In this paper I consider sacrifice ratios and output–inflation trade-offs from 1981–98 and allow their dependence on openness to vary with the exchange rate regime. Sacrifice ratios are weakly negatively related to openness, but the strength of the relationship does not increase with exchange rate flexibility. Output–inflation trade-offs are negatively related to openness, and the strength of the relationship increases with exchange rate flexibility. |
| spellingShingle | Bowdler, C Openness, exchange rate regimes and the Phillips curve. |
| title | Openness, exchange rate regimes and the Phillips curve. |
| title_full | Openness, exchange rate regimes and the Phillips curve. |
| title_fullStr | Openness, exchange rate regimes and the Phillips curve. |
| title_full_unstemmed | Openness, exchange rate regimes and the Phillips curve. |
| title_short | Openness, exchange rate regimes and the Phillips curve. |
| title_sort | openness exchange rate regimes and the phillips curve |
| work_keys_str_mv | AT bowdlerc opennessexchangerateregimesandthephillipscurve |