- increased inflation. thirdly, increased international migration of workforce changes the situation on local labour markets. where the workforce outflows, the wage pressures increase ; in the case of an inflow of workforce, the wage pressures go down. fourthly, globalisation changes the functioning of financial markets and increases the uncertainty as to the impact of decisions made by the central bank on these markets and on macroeconomic variables. fifthly, globalisation has an impact on the central bank ’ s perception of the economic environment and the monetary policy strategy it applies. a fast transfer of the economic know - how ( flow of the economic knowledge and analytical methods ) changes the methods of economic analysis by central bank economists, as well as the way decisions regarding the monetary policy are made. sixthly, globalisation increases the risk of speculative bubbles on the assets market. let us have a step - by - step look at these channels of influence of globalisation on the monetary policy. re 1 ) the growing share of international trade in the global output as well as the increasing international capital flows cause a situation, where the growth rate of a national economy depends increasingly on the developments of the global economy. to illustrate the impact of globalisation on the economic prospects, attention should be drawn to the hot topic in the macroeconomic policy, namely the problem of global imbalances. to give you some facts, the us current account deficit had been growing gradually over the past years to exceed usd 800 billion, i. e. 6. 5 % of the u. s. gdp, last year. this deficit, which represents import of savings from the rest of the world to the usa, is financed by the asian central banks, for example the peoples bank of china, and by oil - exporting countries. the available forecasts show that the deficit will continue to grow. an animated debate is currently underway to determine whether this is a steady situation that simply reflects the new principles in the global economy 5, or whether this trend is bound to stop and reverse sooner or later, which may entail a significant increase in the us long - term interest rates, a strong depreciation of the us dollar and a serious slowdown in the global economic growth. the majority of empirical and theoretical studies indicates a growing probability of the latter scenario, especially if no due steps are taken in many countries. these steps include the necessity to accelerate the potential gdp growth in the european union and japan through reforms of the labour market and the product market,

krzysztof rybinski : globalisation and its implications for monetary policy speech by mr krzysztof rybinski, deputy president of the national bank of poland, at a series of seminars by the centre for european regional and local studies and the unesco chair, warsaw university, warsaw, 6 april 2006. * * * ladies and gentlemen, globalisation is a term used frequently in the economic debate nowadays, and it would be difficult to find an area of economic research that is “ globalisation - free ”. however, its meaning is so broad, that when globalisation is referred to in a discussion, various people understand various things. for this very reason, a discussion on globalisation and the monetary policy should commence with an attempt to define the term. one of the definitions of globalisation is provided by the international monetary fund ( imf ) 1, where it is construed as “ the growing interdependence ( integration ) of national economies, in particular as a result of the growing international trade and financial flows ”. moreover, an element of globalisation that is worth mentioning is the fast flow of information and knowledge, which is the driving force behind globalisation processes. one should keep in mind that globalisation is not a completely new phenomenon 2. in view of the existence of political barriers to international trade, the flow of capital and goods was equally as possible one hundred years ago as it is today. it goes without saying, however, that as a result of the rapid development of technology, especially in the ict area, which drastically lowered the cost of the said exchange, the international integration of trade, investment, financial and other services is now more advanced than it has ever been before. the economic policy committee of the european union 3 points out four factors that have lead to the rapid development of globalisation over the past years : • multilateral trade liberalisation ; the average customs duty has been lowered by ca. 30 % • successful economic reforms in many developing countries, especially in china and india • the technological advancement, especially in the ict sector and transportation, which has significantly lowered the cost of trade. to give you and example, fees for sea, land and air transportation, telephone calls and satellite calls went down by 21 %, 30 %, 95 % and 88 %, respectively. • the technological advancement has blurred the borderline between what can and what cannot become subject to international trade. globalisation may create new macroeconomic interdependences