The paper traces the dangers in the closed economy perspective of a monetary policy focused on a domestic inflation goal under a clean float. Field evidence of the damage wrought from this perspective is reinforced by that from a laboratory experiment. The laboratory experiment avoids...

The paper traces the dangers in the closed economy perspective of a   monetary policy focused on a domestic inflation goal under a clean   float.  Field evidence of the damage wrought from this perspective is   reinforced by that from a laboratory experiment.  The laboratory  ...