The effects of globalization on inflation and their implications for monetary policy
AbstractPolicymakers here and abroad cannot lose sight of a fundamental truth: In a world of separate currencies that can fluctuate against each other over time, each country’s central bank determines its inflation rate. If the FOMC were to allow the U.S. economy to run beyond its sustainable potential for some time, inflation would eventually rise. And, this pickup would become self-perpetuating if it became embedded in inflation expectations. Thus, while a better understanding of the implications of globalization will aid in our understanding of inflation dynamics, it is also clear that such developments do not relieve central banks of their responsibility for maintaining price and economic stability.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Boston in its journal Conference Series ; [Proceedings].
Volume (Year): (2006)
Issue (Month): ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Toshitaka Sekine, 2009.
"Another look at global disinflation,"
BIS Working Papers
283, Bank for International Settlements.
- Sekine, Toshitaka, 2009. "Another look at global disinflation," Journal of the Japanese and International Economies, Elsevier, vol. 23(2), pages 220-239, June.
- Toshitaka Sekine, 2009. "Another look at global disinflation," NBER Chapters, in: Financial Globalization, 20th Anniversary Conference, NBER-TCER-CEPR National Bureau of Economic Research, Inc.
- Gaiotti, Eugenio, 2008.
"Has globalisation changed the Phillips curve? Firm-level evidence on the effect of activity on prices,"
8389, University Library of Munich, Germany.
- Eugenio Gaiotti, 2008. "Has globalisation changed the Phillips curve? Firm-level evidence on the effect of activity on prices," Temi di discussione (Economic working papers) 676, Bank of Italy, Economic Research and International Relations Area.
- Efrem Castelnuovo, 2006.
"Tracking U.S. Inflation Expectations with Domestic and Global Indicators,"
"Marco Fanno" Working Papers
0031, Dipartimento di Scienze Economiche "Marco Fanno".
- Castelnuovo, Efrem, 2010. "Tracking U.S. inflation expectations with domestic and global indicators," Journal of International Money and Finance, Elsevier, vol. 29(7), pages 1340-1356, November.
- Marzinotto, Benedicta, 2009. "Beyond monetary credibility: The impact of globalisation on the output-inflation trade-off in euro-area countries," The North American Journal of Economics and Finance, Elsevier, vol. 20(2), pages 162-176, August.
- Milani, Fabio, 2010.
"Global slack and domestic inflation rates: A structural investigation for G-7 countries,"
Journal of Macroeconomics,
Elsevier, vol. 32(4), pages 968-981, December.
- Fabio Milani, 2009. "Global slack and domestic inflation rates: a structural investigation for G-7 countries," Globalization and Monetary Policy Institute Working Paper 33, Federal Reserve Bank of Dallas.
- Fabio Milani, 2009. "Global Slack and Domestic Inflation Rates: A Structural Investigation for G-7 Countries," Working Papers 080919, University of California-Irvine, Department of Economics.
- Argia M. Sbordone, 2007.
"Globalization and Inflation Dynamics: the Impact of Increased Competition,"
NBER Working Papers
13556, National Bureau of Economic Research, Inc.
- Argia M. Sbordone, 2007. "Globalization and Inflation Dynamics: The Impact of Increased Competition," NBER Chapters, in: International Dimensions of Monetary Policy, pages 547-579 National Bureau of Economic Research, Inc.
- Argia M. Sbordone, 2008. "Globalization and inflation dynamics: the impact of increased competition," Staff Reports 324, Federal Reserve Bank of New York.
- Calza, Alessandro, 2008. "Globalisation, domestic inflation and global output gaps: Evidence from the euro area," Working Paper Series 0890, European Central Bank.
- Dora M. Iakova, 2007. "Flattening of the Phillips Curve: Implications for Monetary Policy," IMF Working Papers 07/76, International Monetary Fund.
- Kenneth S. Rogoff, 2006. "Impact of globalization on monetary policy," Proceedings, Federal Reserve Bank of Kansas City, pages 265-305.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio).
If references are entirely missing, you can add them using this form.