Inflation persistence and exchange rate regime: implications for dynamic adjustment to shocks in a small open economy
The paper examines implications of ination persistence for business cycle dynamics following terms of trade shock in a small oil producing economy, under ination targeting and exchange rate targeting regimes. It is shown that due to the 'Walters critique' effect, the country's adjustm...
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| Natura: | Working paper |
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University of Oxford
2011
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