Inflation became the dominant economic, social, and political
problem of the industrialized West during the 1970s. This book is
about how the inflation came to pass and what can be done about it.
Certain to provoke controversy, it is a major source of new
empirical information and theoretical conclusions concerning the
causes of international inflation.
The authors construct a consistent data base of information for
eight countries and design a theoretically sound model to test and
evaluate competing hypotheses incorporating the most recent
theoretical developments. Additional chapters address an impressive
variety of issues that complement and corroborate the core of the
study. They answer such questions as these: Can countries conduct
an independent monetary policy under fixed exchange rates? How
closely tied are product prices across countries? How are
disturbances transmitted across countries?
"The International Transmission of Inflation" is an important
contribution to international monetary economics in furnishing an
invaluable empirical foundation for future investigation and
discussion.
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