Financial Liberalization and Inflationary Dynamics in the Context of a Small Open Economy

The paper develops a short-run model of a small open financially repressed economy characterized by unorganized money markets, capital good imports, capital mobility, wage indexation, and flexible exchange rates. The analysis shows that financial liberalization, in the form of an increased rate of interest on deposits and tight monetary policy, unambiguously and unconditionally causes deflation. Moreover, the results do not depend on the degree of capital mobility and structure of wage setting. The paper recommends that a small open developing economy should deregulate interest rates and tighten monetary policy if reducing inflation is a priority. The pre-requisite for such a policy, however, requires the establishment of a flexible exchange rate regime.

Coming Soon to John Dempsey Hospital: Schwartz Center Rounds®

SCHWARTZ CENTER ROUNDS® at John Dempsey Hospital Schwartz Center Rounds were created to provide a multidisciplinary forum where clinical caregivers have the opportunity to discuss their experiences, thoughts and feelings. The Rounds, which differ from medical or ethics Rounds, offer caregivers a safe, open and relaxed place where they can share their concerns and fears, both for their patients and themselves. The premise is that caregivers are better able to make personal connections with patients when they have greater awareness of, and insight into, their own responses and feelings. The Rounds provide a scheduled time and place where caregivers focus on the social, emotional and personal aspects of patient care.