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- W1502082910 abstract "The posited link between global capacity utilization and US inflation is straightforward. Foreign capacity utilization is assumed to affect the prices of foreign goods. Foreign goods prices, then, help determine US import prices. The industry-level data suggest that foreign producers are likely to change their US prices significantly only if their US competitors do so also, and US competitors alter their prices when strains in capacity in the United States raise their costs. The economy may occasionally operate above or below its capacity, but on average it should run near its potential level. In reality, output may differ from its full-employment level for a significant length of time, so this method of calculating potential output could produce a serious over-or underestimation of capacity. The justification for including the foreign gap is clear; if foreign excess capacity is holding down foreign costs of production, it might restrain the price inflation of foreign goods to US consumers and producers." @default.
- W1502082910 created "2016-06-24" @default.
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- W1502082910 date "2020-04-30" @default.
- W1502082910 modified "2023-10-16" @default.
- W1502082910 title "Globalization and U.S. Inflation" @default.
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- W1502082910 doi "https://doi.org/10.4324/9780429270949-43" @default.
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