Standard open economy models predict that openness to trade should exert a positive effect on the slope of the output-iflation tradeoff, or Phillips curve, but such a proposition fi nds very little support in the existing empirical literature. We propose a new test of this hypothesis based on new measures of the slope of the Phillips curve and more general cross-country regression models. The results indicate some support for the standard theoretical prediction, but it is con ned to those cou...Expand abstract
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Openness and the Output-Inflation Tradeoff.
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