Inflation rates soar as openness no longer curbs rising prices.
The relationship between openness and inflation has changed over time. In the 1990s, the negative link between the two disappeared. Instead, higher-income countries have seen a significant decrease in inflation compared to lower-income countries. Since 1973, countries with floating exchange rates have had inflation rates at least 10% higher than those with fixed exchange rates. Additionally, there is a consistent positive connection between a country's land area and its inflation rate.