Razin, Asaf (contributor); Binyamini, Alon (contributor) - 2007
This paper reviews the analytics of the effects of globalization on the Phillips curve and the utility-based objective … function of the central bank. It demonstrates that in an endogenous-policy set up, when trade in goods is liberalized … less responsive to the output gap. In other words, globalization induces the monetary authority, when guided in its policy …