Dynamic panel estimates show the negative relation between trade openness and inflation found by Romer (Quarterly Journal of Economics, (VIII, 869–903, 1993) but questioned by Terra (Quarterly Journal of Economics, (XIII, 641–48, 1998) became more robust in the 1990s, both among high income OECD and developing countries. Trade openness was also associated with less variable inflation during the 1990s and had a stronger disinflation effect in economies with floating exchange rates.
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Gruben et al. (2004) studied this question.
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