Bowen, Alex and Mayhew, Karen (2008) Globalisation, import prices and inflation: how reliable are the ‘tailwinds’? Bank of England Quarterly Bulletin, 48 (3). pp. 283-291. ISSN 0005-5166
Full text not available from this repository.Abstract
It is sometimes argued that increasing globalisation and openness to trade has exerted downward pressure on inflation in developed countries by, for example, reducing import prices. But, as recent experience of rising commodity prices suggests, globalisation may sometimes be associated with rising import prices. And, even when import prices were falling, the consequences for inflation depended on whether the changes in real incomes brought about were anticipated by households and how monetary policy reacted. Studies that neglect expectations and the role of monetary policy in determining inflation are likely to mismeasure the impact of globalisation on domestic inflation.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.bankofengland.co.uk/publications/quarte... |
| Additional Information: | © 2008 Bank of England |
| Divisions: | Grantham Research Institute |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
| JEL classification: | E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance |
| Date Deposited: | 06 Dec 2011 15:01 |
| Last Modified: | 15 Sep 2023 13:41 |
| URI: | http://eprints.lse.ac.uk/id/eprint/39931 |
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