Globalization and Changing Inflation Dynamics in China

Globalization and Inflation Dynamics: The Impact of Increased Competition

This paper analyzes the potential effect of global market competition on inflation dynamics. It does so through the lens of the Calvo model of staggered price setting, which implies that inflation depends on expected future inflation and a measure of marginal costs. I modify the assumption of a constant elasticity of demand, standard in this model, to provide a channel through which an increase...

Globalization , the Output - Inflation Tradeoff , and Inflation

Globalization and Inflation in Europe - Dallas Fed

Abstract What is the impact of import competition from other low-wage countries (LWCs) on inflationary pressure in Western Europe? This paper seeks to understand whether laborintensive exports from emerging Europe, Asia, and other global regions have a uniform impact on producer prices in Germany, France, Italy, Sweden, and the United Kingdom. In a panel covering 110 (4-digit) NACE industries f...

Inflation Dynamics in a Dutch Disease Economy

Abstract In this paper, the effect of foreign sector macro-variable on inflation dynamics and firms’ pricing behavior has been investigated in the context of a small open economy New Keynesian Phillips Curve. This curve is derived and estimated for a developing oil-exporting economy suffering from Dutch Disease. This version of NKPC is an extension of Leith and Malley’s (2007) small open econom...

How Has Globalization Affected Inflation?

market economies has remained remarkably subdued over the past two years despite a significant rise in commodity prices, strong growth, and a broadly accommodating monetary policy stance in the major currency areas. Is this situation sustainable or does it foreshadow unwelcome inflation surprises in the near future? Some analysts have argued that low and stable inflation reflects more intense g...