Globalisation, import prices and inflation: how reliable are the ‘tailwinds’?
ثبت نشده
چکیده
Rising ratios of trade to world output (Chart 1) and the integration of emerging markets in the global economy (Chart 2) have been key aspects of globalisation. Several of the possible macroeconomic consequences were explored in a recent Quarterly Bulletin article by Spange and Young (2007). These phenomena are having a profound effect on the world economy. But what implications do they have for inflation?
منابع مشابه
Key Elements of Global Inflation
Against the background of large fluctuations in world commodity prices and global growth, combined with ongoing structural changes relating to globalisation, this paper examines some of the key factors affecting global inflation. The paper investigates the effects of shocks affecting relative prices and structural changes on global inflation by: estimating a global vector autoregression (GVAR) ...
متن کاملTheory and Methods Research Paper 2009 / 22 Key elements of global inflation
Against the background of large fluctuations in world commodity prices and global growth, combined with ongoing structural changes relating to globalization, this paper examines some of the key factors affecting global inflation. The paper empirically investigates various relative price and structural impacts on global inflation by: estimating a GVAR to examine how oil price shocks feed through...
متن کاملGlobalisation and inflation: New cross-country evidence on the global determinants of domestic inflation, May 2007
There has been mounting evidence that the inflation process has been changing. Inflation is now much lower and much more stable around the globe. And its sensitivity to measures of economic slack and increases in input costs appears to have declined. Probably the most widely supported explanation for this phenomenon is that monetary policy has been much more effective. There is no doubt in our ...
متن کاملDiscussion of Key Elements of Global Inflation
This paper studies recent trends in global inflation, with the broad aim of assessing the relative influences of phenomena associated with globalisation on European inflation. The authors’ approach is very broad, inviting the reader to look at many characteristics of inflation through a variety of windows. These windows provide glimpses on the conflicting pressures on prices that Europeans face...
متن کاملInflation dynamics in open economies: Empirical evidence for G7 countries on the role of import prices and the cost channel
The supply side effects of both the nominal interest rate (i.e., the cost channel) and import prices on inflation are very important for the design of monetary policy. However, the empirical identification of the cost channel (traditionally associated with the advance payment of wages) has ignored import prices. We start by deducting a New Keynesian Phillips Curve (NKPC) which shows that ignori...
متن کامل