Globalization, macroeconomic performance, and monetary policy
By: Frederic S. Mishkin.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13948; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13948.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "The paper argues that many of the exaggerated claims that globalization has been an important factor in lowering inflation in recent years just do not hold up.  Globalization does, however, have the potential to be stabilizing for individual economies and has been a key factor in promoting economic growth.  The paper then examines four questions about the impact of globalization on the monetary transmission mechanism and arrives at the following answers: (1) Has globalization led to a decline in the sensitivity of inflation to domestic output gaps and thus to domestic monetary policy? No.  (2) Are foreign output gaps playing a more prominent role in the domestic inflation process, so that domestic monetary policy has more difficulty stabilizing inflation? No.  (3) Can domestic monetary policy still control domestic interest rates and so stabilize both inflation and output? Yes.  (4) Are there other ways, besides possible influences on inflation and interest rates, in which globalization may have affected the transmission mechanism of monetary policy? Yes"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/2/2008.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.