Financial Openness and Inflation: Recent Evidence

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dc.contributor.authorGuender, Alfred
dc.contributor.authorMcHugh-Smith, Hamish
dc.date.accessioned2024-03-05T23:31:20Z
dc.date.available2024-03-05T23:31:20Z
dc.date.issued2023
dc.date.updated2023-01-31T00:17:52Z
dc.description.abstractIn a model comprising a bank and goods-producing firm, this paper advances the hypothesis that financial openness should be inversely related to the rate of inflation. Our empirical analysis reveals a strong and robust inverse link between financial openness and CPI inflation in over 100 countries over the 1997-2016 period, adding weight to the argument that inflation in financially open economies is indeed lower. This result obtains for OECD countries as well as non-OECD countries. Trade openness in contrast bears no systematic relationship to inflation.
dc.identifier.citationGuender A (2023). Financial Openness and Inflation: Recent Evidence. CAMA, Australian National University. Canberra. CAMA, Australian National University. 1-30.
dc.identifier.issn2206-0332
dc.identifier.urihttps://hdl.handle.net/10092/106782
dc.publisherCAMA, Australian National University
dc.rightsAll rights reserved unless otherwise stated
dc.rights.urihttp://hdl.handle.net/10092/17651
dc.subjectFinancial Openness
dc.subjectInflation
dc.subjectTrade openness
dc.subjectBank Loans
dc.subjectDeposits
dc.subjectNominal Price Rigidity
dc.subject.anzsrc35 - Commerce, management, tourism and services::3502 - Banking, finance and investment
dc.titleFinancial Openness and Inflation: Recent Evidence
dc.typeDiscussion / Working Papers
uc.collegeUC Business School
uc.departmentDepartment of Economics and Finance
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