of the system to one comprising inflation and relative prices. This is then estimated in I(1) space. An impulse response … on domestic inflation is moderated. This explains why the depreciation of sterling in 1992 left inflation unchanged. In … contrast, high real import prices in 1974 increased inflation because wage accommodation effects were absent. …

Standard open economy models predict that openness to trade should exert a positive effect on the slope of the output-inflation …

inflation dynamics in open economies, but previous studies have not made a distinction between fixed and floating exchange rate … driving output and inflation (the underlying theory requires that monetary shocks dominate). We calculate new measures of the …

Recent decades have seen a considerable expansion of global trade and a simultaneous decline in inflation volatility …. This paper investigates whether greater openness to trade helps achieve inflation stability. Using panel data for a sample … effect of openness on inflation volatility. This relationship is estimated after controlling for the potential endogeneity of …

Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input … permanent shifts in the markup factor through estimating an inflation equation that includes a time-varying intercept. The model …