This paper further tests Romer's (1993) extension of Kydland and Prescott's (1977) predictions for dynamic-inconsistency problems in open economies. In a panel data set of developed and developing countries from 1973 to 1998, I find that openness does not play a role in restricting inflation in...

Chapter 1. Introduction -- Chapter 2. Are Current Policies on Track to Eliminate Poverty? -- Chapter 3. How Mainstream Economics Works -- Chapter 4. Basic Principles to Understand Macroeconomics -- Chapter 5. Markets Alone Make No Development -- Chapter 6. Developing Countries in Global...