Frankel, Jeffrey Alexander - National Bureau of Economic Research (NBER) - 1983
. In the other country, say Europe, the exchange rate change worsens inflation.This paper starts from the premise that … to a more contractionary monetary policy in order to fight inflation. Given the U.S. contraction, it might be desirable … aggregate output and inflation.This conclusion follows from the assumption that in each of two sectors,nontraded goods or …