Chapter III: How has globalization affected inflation?

From: World Economic Outlook | Date: April 1, 2006| Author: | Copyright information

Inflation in advanced and many emerging 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 global competition, which prevents firms from raising prices and puts downward pressures on wages in many sectors. (1) If so, and given that lower-cost ...

Read all of this article with a FREE trial to HighBeam Research

Related newspaper, magazine, and trade journal articles from HighBeam Research

(Including press releases, facts, information, and biographies)

Does monetary policy have asymmetric effects on stock returns?(Author abstract)
; ...and financial economists of whether monetary policy affects stock returns. A number of...empirically investigated the effects of monetary policy on stock returns. Using money aggregate...stock returns lag behind changes in monetary policy; for instance, see Keran (1971), Homa...
Monetary Policy and the Well-Being of the Poor.
; ...central concern. At the same time, monetary policy is one of the modern age's most potent...importance of poverty' and the influence of monetary policy, it is natural to ask if monetary policy can be used as a tool to help the poor...
Monetary policy under a quasi-fixed exchange rate regime. The case of France between 1987-1996
; Monetary policy under a quasi-fixed exchange rate...years, the major objective of French monetary policy has been widely described as decreasing...exchange rate precludes independent monetary policy, but the European Monetary System...
Taking stock: monetary policy transmission to equity markets.(analysis)
; ...emphasized that, in particular, monetary policy can change this ratio. This...the stock market channel of monetary policy transmission. Tobin's argument...was that a tightening of monetary policy, which may result from an...
Can inflation targeting be a framework for monetary policy in developing countries?(Inflation)
; ...adoption of inflation targeting as a monetary policy framework has enhanced transparency...adopted a framework for carrying out monetary policy that became known as inflation targeting...had encountered in conducting their monetary policy using an exchange rate peg or some...
Has Monetary Policy Been So Bad That It Is Better to Get Rid of It? The Case of Mexico.(Statistical Data Included)
; ...generally hold the view that domestic monetary policy has been the primary cause for...have tried to identify the role of monetary policy. The existing empirical literature on Mexican monetary policy consists mainly of single equation...
Monetary policy and the term structure of interest rates in Japan.
; ...between the Japanese yield curve and monetary policy. In the 1980s and 1990s average bond...understanding the contribution of monetary policy to these movements in the yield curve...questions about the effectiveness of monetary policy under a zero nominal interest rate...
Monetary policy in a low inflation environment
; ...opportunity to comment on conducting monetary policy in a low inflation environment. I...persist, which together constitute the monetary policy equivalent of finding the Holy Grail...several key aspects of the evolution of monetary policy over the last thirty years. To appreciate...
Short-run monetary policy and the macroeconomic environment
; ...study investigates factors influencing monetary policy decisions of the Federal Open Market...perspectives regarding the process of monetary policy making exist, with some researchers...considerations significantly influence monetary policy voting. Empirical studies support...
Monetary policy in a Markov-switching vector error-correction model: implications for the cost of disinflation and the price puzzle.
; Monetary policy vector autoregressions (VARs) typically...error-correction term to switch. We find that monetary policy alternates between sustaining long-r...implications for disinflationary monetary policy and can explain the variety of sacrifice...