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Inflation dynamics in a globalized world: Exploring the relationship between globalization and inflation in the post-COVID global economy

Abdirisak Isse, Khalid LU (2024) EKHS11 20241
Department of Economic History
Abstract (Swedish)
This thesis investigates the relationship between globalization and inflation in the post-COVID world, focusing on the relation between openness-to-trade and inflation. The relationship between the output-inflation tradeoff and openness is also enquired, as it is an oft-suggested channel for the globalization-inflation relationship. Given the centrality of price stability as a key macroeconomic objective as well as the effect of the COVID-19 pandemic on the dynamics of globalization, hence, there is a need to revisit this debate using the most recent data. After exploring the debates in the literature regarding the relationship between these variables and the different models, a multivariate panel OLS regression is conducted to empirically... (More)
This thesis investigates the relationship between globalization and inflation in the post-COVID world, focusing on the relation between openness-to-trade and inflation. The relationship between the output-inflation tradeoff and openness is also enquired, as it is an oft-suggested channel for the globalization-inflation relationship. Given the centrality of price stability as a key macroeconomic objective as well as the effect of the COVID-19 pandemic on the dynamics of globalization, hence, there is a need to revisit this debate using the most recent data. After exploring the debates in the literature regarding the relationship between these variables and the different models, a multivariate panel OLS regression is conducted to empirically test the proposed hypotheses in light of recent data. The findings indicate a negative relationship between openness and inflation, as well as between openness and the output-inflation tradeoff. Some possible explanations for these findings are suggested. (Less)
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author
Abdirisak Isse, Khalid LU
supervisor
organization
course
EKHS11 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
output-inflation trade off, globalization, COVID-19, openness-to-trade, discretionary monetary policy
language
English
id
9177452
date added to LUP
2024-11-11 08:53:43
date last changed
2024-11-11 08:53:43
@misc{9177452,
  abstract     = {{This thesis investigates the relationship between globalization and inflation in the post-COVID world, focusing on the relation between openness-to-trade and inflation. The relationship between the output-inflation tradeoff and openness is also enquired, as it is an oft-suggested channel for the globalization-inflation relationship. Given the centrality of price stability as a key macroeconomic objective as well as the effect of the COVID-19 pandemic on the dynamics of globalization, hence, there is a need to revisit this debate using the most recent data. After exploring the debates in the literature regarding the relationship between these variables and the different models, a multivariate panel OLS regression is conducted to empirically test the proposed hypotheses in light of recent data. The findings indicate a negative relationship between openness and inflation, as well as between openness and the output-inflation tradeoff. Some possible explanations for these findings are suggested.}},
  author       = {{Abdirisak Isse, Khalid}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Inflation dynamics in a globalized world: Exploring the relationship between globalization and inflation in the post-COVID global economy}},
  year         = {{2024}},
}