Does Capital Account Openness Lower Inflation?

×

Error message

  • Deprecated function: Function create_function() is deprecated in require_once() (line 591 of /var/www/eaber.org/includes/cache.inc).
  • Deprecated function: Function create_function() is deprecated in require_once() (line 591 of /var/www/eaber.org/includes/cache.inc).
Author: 
Abhijit Sen Gupta
Description: 
Indian Council For Research On International Economic Relations Working Paper No. 191
JEL codes: 
Abstract: 
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.
Error | EABER

Error

The website encountered an unexpected error. Please try again later.