Has Globalization Changed Inflation?

21 Pages Posted: 20 Nov 2006 Last revised: 2 Sep 2022

See all articles by Laurence Ball

Laurence Ball

Johns Hopkins University - Department of Economics; National Bureau of Economic Research (NBER); International Monetary Fund (IMF)

Date Written: November 2006


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

Ball, Laurence M., Has Globalization Changed Inflation? (November 2006). NBER Working Paper No. w12687, Available at SSRN: https://ssrn.com/abstract=944176

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