Inflation and Real Growth in a Small Open Economy — The Swiss Case
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Inflation and Real Growth in a Small Open Economy — The Swiss Case
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 100 (1980), Iss. 6 : pp. 555–566
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Wasserfallen, Walter
Abstract
A small model of the output market, based on Phillips-curve analysis, is developed, showing the responses of demanders and suppliers to three categories of exogenous shocks - monetary, fiscal and foreign. The relative importance of the various forces is investigated by econometric methods using annual data for the period 1956 -1975. The deviation of real growth from its trend is mainly influenced by relative changes in the stock of money, real exports and import prices. The first two impulses are also significantly related to inflation. No effects of fiscal policy could be discovered.