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International Money and Finance

Findings from University of Windsor in international money and finance reported

Published in Healthcare Finance, Tax and Law Weekly, December 12th, 2007

According to recent research published in the Journal of International Money and Finance, "This paper studies exchange-rate-based stabilization programs in the context of a dynamic general equilibrium model for a small open economy that incorporates imperfect competition, a backward-looking wage setting, and an endogenous labor supply."

"In contrast to previous results, the analysis shows that a permanent disinflation leads to a sustained expansion in the domestic sector and a slow inflation convergence," wrote H.J. Rhee and colleagues, University of Windsor.

The researchers concluded: "This study also shows that a temporary stabilization...

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