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How does international financial integration affect national price levels? To analyze this question, this paper formulates a two-country open economy sticky-price model under either segmented or complete asset markets. It is shown that the effect of financial integration, i.e. moving from...
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on the size of the real world economy, in purchasing power parity (PPP) terms, the paper presents estimates of global and … China and USA were almost at the same level in 2017. Based on the projections to 2019 from the Penn World Table 10.0 and the …
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