Globalization and Disinflation: A Note

We analyse how globalization forces induce monetary authorities, guided in their policies by the welfare criterion of a representative household, to put greater emphasis on reducing the inflation rate than on narrowing the output gaps. Specifically, I demonstrate how the relative weight of the output gap term in a utility-based loss function shrinks when the economy is open to international trade in goods, and is integrated to the world capital markets.

MoreLess

Year of publication:	2005-01
Authors:	Razin, Assaf
Institutions:	C.E.P.R. Discussion Papers
Subject:	aggregate supply \| captial market openness \| inflation-output tradeoff \| trade openness

Online Resource

Check full text access |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 4826
Classification:	E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General ; F02 - International Economic Order; Economic Integration and Globalization: General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005136513