Document Type

Article

Language

eng

Format of Original

15 p.

Publication Date

9-2009

Publisher

Springer

Source Publication

Open Economies Review

Source ISSN

0923-7992

Abstract

This paper develops and evaluates empirically the implications of a theoretical model of an open economy in which variations in both trade openness and capital mobility can influence the sacrifice ratio. Key predictions forthcoming from the model are that both forms of globalization can independently affect the sacrifice ratio, once the influences of the level of central bank independence and the degree of wage stickiness in nations’ economies are taken into account. Examination of cross-country data encompassing 58 disinflations for 16 countries yields evidence consistent with these essential predictions of the theoretical framework.

Comments

Accepted version. Open Economics Review, Vol. 20, No. 4 (September 2009): 473-487. DOI. © 2009 Springer. Used with permission.

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