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Is globalization reducing the ability of central banks to control inflation?

Gerba, Eddie and Macchiarelli, Corrado (2015) Is globalization reducing the ability of central banks to control inflation? IP/A/ECON/2015-07 (PE 563.476). European Parliament, Policy Department A: Economic and Scientific Policy, Brussels, Belgium.

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Since the beginning of the crisis, inflation rates have shown a clear downward trend in many advanced countries and have fallen well below the targets of their respective monetary authorities. Despite strong monetary action, inflation expectations are slow to pick up. In some countries, the recovery is quite strong and unemployment rates have decreased, yet price pressures and wage development continue to remain subdued. Do central banks seem to have (partially) lost their ability to control inflation rates? Against the backdrop of fluctuations in global commodity prices and growth, together with the ongoing structural changes related to globalization wielding pressure on prices and wages, this paper focuses on the implications of globalization for domestic inflation and its expectations and the possible consequences for national monetary policies.

Item Type: Monograph (Report)
Official URL:
Additional Information: "This policy contribution was prepared on request of the ECON Committee of the European Parliament for the Monetary Dialogue with the President of the European Central Bank on 02/06/2016 ( Copyright remains with the European Parliament at all times". © 2015 European Parliament
Divisions: European Institute
Subjects: J Political Science > JN Political institutions (Europe)
Date Deposited: 07 Dec 2016 12:18
Last Modified: 15 Sep 2023 22:26

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