TY  - JOUR
AU  - Razin,Assaf
AU  - Binyamini,Alon
TI  - Flattened Inflation-Output Tradeoff and Enhanced Anti-Inflation Policy: Outcome of Globalization?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13280
PY  - 2007
Y2  - July 2007
UR  - http://www.nber.org/papers/w13280
L1  - http://www.nber.org/papers/w13280.pdf
N1  - Author contact info:
Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu

Alon Binyamini
Eitan Berglas School of Economics
Tel Aviv University
Tel Aviv 69978
Israel
And Bank of Israel
E-Mail: alonbiny@post.tau.ac.il
AB  - 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.
ER  -