Flattened inflation-output tradeoff and enhanced anti-inflation policy
Subtitle: outcome of globalization?
By: Assaf Razin, Alon Binyamini.
Contributors: Binyamini, Alon.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13280.; Working paper series (National Bureau of Economic Research) -- working paper no. 13280.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 26
Subjects: Globalization; Monetary policy -- Econometric models
Description: The paper provides a unified analysis of globalization effects on the Phillips curve and monetary policy, in a New-Keynesian framework. The main proposition of the paper is twofold. Labor, goods, and capital mobility flatten the tradeoff between inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more benign with respect to the output-gap fluctuations.
Notes: "July 2007."

Includes bibliographical references (p. 20-21).

Also available in PDF from the NBER World Wide Web site (www.nber.org).