Is Globalization Reducing the Ability of Central Banks to Control Inflation?

16-11-2015

The notes in this compilation prepared by key monetary experts explore the different ways in which globalisation could have an impact on inflation and monetary policy transmission channels. The growing integration of production processes, commodity price shifts and the reduced ability of wage negotiators to set wages due to globally more integrated labour markets are examples of powerful factors shaping domestic inflation developments. The notes have been requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament as an input for the November 2015 session of the Monetary Dialogue between the Members of the ECON Committee and the President of the ECB.

The notes in this compilation prepared by key monetary experts explore the different ways in which globalisation could have an impact on inflation and monetary policy transmission channels. The growing integration of production processes, commodity price shifts and the reduced ability of wage negotiators to set wages due to globally more integrated labour markets are examples of powerful factors shaping domestic inflation developments. The notes have been requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament as an input for the November 2015 session of the Monetary Dialogue between the Members of the ECON Committee and the President of the ECB.

Extern avdelning

Christophe BLOT, Jérôme CREEL, Paul HUBERT, Fabien LABONDANCE and Xavier RAGOT (OFCE, Observatoire Français des Conjonctures Économiques) ; Grégory CLAEYS and Guntram WOLFF (Bruegel) ; Christian DREGER, Malte RIETH and David POTHIER (DIW, Deutsches Institut für Wirtschaftsforschung) ; Salomon FIEDLER, Nils JANNSEN, Stefan REITZ and Maik WOLTERS (Kiel Institute for the World Economy) ; Eddie GERBA and Corrado MACCHIARELLI (LSE, London School of Economics) ; Christopher HARTWELL (CASE, Centre for Social and Economic Research) ; Andrew HUGHES HALLETT (School of Economics and Finance, University of St Andrews)