Paper
Openness and Inflation in Iran
- Authors:
- Saman Ghaderi; Ahmad Jafari Samimi; Bahram Sanginabadi
- Abstract
- The purpose of this paper is to test the hypothesis first documented by [1], that inflation is lower in more open economies. According to this hypothesis, central banks have a smaller incentive to engineer surprise inflations in more-open economies because the Phillips curve is steeper.We utilized the ARDL Bounds test approach to level relationship proposed by [2] for Iranian annual data over the period 1973-2007. Results from Bounds test approach confirm existence of long-run relationship among the variables under consideration. The results show that openness has negative and significant effect on inflation in short-run but its effect in long-run is not significant.
- Keywords
- Openness; Inflation; Iran; ARDL Bounds test approach.
- StartPage
- 42
- EndPage
- 49
- Doi