On the theory of inflation in open economies
The theoretical literature provides straightforward answers to questions of the general form: what are the long-run effects on inflation at home and abroad of a sustained increase in monetary growth at home? It is less informative, however, about questions of the kind: what are the long-run effects on monetary growth and inflation at home and abroad of a sustained increase in the gap between public purchases of home output and net explicit taxes on home incomes? Building on the work of...[Show more]
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