Does Capital Account Openness Lower Inflation?

This paper investigates the relationship between capital account openness and inflation since the 1980s. It argues that widespread capital account liberalization during the last two decades appears to have contributed to the worldwide disinflation observed during the same period. The paper builds a...

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Bibliographic Details
Main Author:	Gupta, Abhijit Sen
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Price Level Inflation Deflation E310 Monetary Policy E520 Current Account Adjustment Short-term Capital Movements F320
Online Access:	http://hdl.handle.net/10986/5812

id	okr-10986-5812
recordtype	oai_dc
spelling	okr-10986-58122021-04-23T14:02:23Z Does Capital Account Openness Lower Inflation? Gupta, Abhijit Sen Price Level Inflation Deflation E310 Monetary Policy E520 Current Account Adjustment Short-term Capital Movements F320 This paper investigates the relationship between capital account openness and inflation since the 1980s. It argues that widespread capital account liberalization during the last two decades appears to have contributed to the worldwide disinflation observed during the same period. The paper builds a theoretical model to motivate the presence of a negative link between financial integration and inflation. It tests the prediction of the theoretical model by employing static and dynamic panel data procedures. Financial integration appears to discipline monetary authorities, or to help them convince the private sector that they will be more disciplined in the future. 2012-03-30T07:34:40Z 2012-03-30T07:34:40Z 2008 Journal Article International Economic Journal 10168737 http://hdl.handle.net/10986/5812 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Price Level Inflation Deflation E310 Monetary Policy E520 Current Account Adjustment Short-term Capital Movements F320
spellingShingle	Price Level Inflation Deflation E310 Monetary Policy E520 Current Account Adjustment Short-term Capital Movements F320 Gupta, Abhijit Sen Does Capital Account Openness Lower Inflation?
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper investigates the relationship between capital account openness and inflation since the 1980s. It argues that widespread capital account liberalization during the last two decades appears to have contributed to the worldwide disinflation observed during the same period. The paper builds a theoretical model to motivate the presence of a negative link between financial integration and inflation. It tests the prediction of the theoretical model by employing static and dynamic panel data procedures. Financial integration appears to discipline monetary authorities, or to help them convince the private sector that they will be more disciplined in the future.
format	Journal Article
author	Gupta, Abhijit Sen
author_facet	Gupta, Abhijit Sen
author_sort	Gupta, Abhijit Sen
title	Does Capital Account Openness Lower Inflation?
title_short	Does Capital Account Openness Lower Inflation?
title_full	Does Capital Account Openness Lower Inflation?
title_fullStr	Does Capital Account Openness Lower Inflation?
title_full_unstemmed	Does Capital Account Openness Lower Inflation?
title_sort	does capital account openness lower inflation?
publishDate	2012
url	http://hdl.handle.net/10986/5812
_version_	1764396390295797760

Does Capital Account Openness Lower Inflation?

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