Has Globalization Changed Inflation?
21 Pages Posted: 20 Nov 2006 Last revised: 2 Sep 2022
Date Written: November 2006
Abstract
Many observers suggest that the "globalization" of the U.S. economy has changed the behavior of inflation. This essay examines this idea, focusing on several questions: (1) Has globalization reduced the long-run level of inflation? (2) Has it affected the structure of inflation dynamics, as captured by the Phillips curve? (3) Has it contributed substantial negative shocks to the inflation process? The answers to these questions are no, no, and no.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Some Simple Tests of the Globalization and Inflation Hypothesis
By Jane E. Ihrig, Steven B. Kamin, ...
-
By Matteo Ciccarelli and Benoit Mojon
-
The "New Keynesian" Phillips Curve: Closed Economy vs. Open Economy
By Assaf Razin and Chi-wa Yuen
-
The 'New Keynesian' Phillips Curve: Closed Economy vs. Open Economy
By Assaf Razin and Chi-wa Yuen
-
Competition, Globalization, and the Decline of Inflation
By Natalie Chen, Jean M. Imbs, ...
-
Competition, Globalization and the Decline of Inflation
By Natalie Chen, Jean M. Imbs, ...
-
Capital Mobility and the Output-Inflation Tradeoff
By Prakash Loungani, Assaf Razin, ...