Has Globalization Changed Inflation?

Laurence M. Ball

NBER Working Paper No. 12687
Issued in November 2006
NBER Program(s):Economic Fluctuations and Growth, Monetary Economics

Many observers suggest that the "globalization" of the U.S. economy has changed the behavior of inflation. This essay examines this idea, focusing on several questions: (1) Has globalization reduced the long-run level of inflation? (2) Has it affected the structure of inflation dynamics, as captured by the Phillips curve? (3) Has it contributed substantial negative shocks to the inflation process? The answers to these questions are no, no, and no.

A non-technical summary of this paper is available in the June 2007 NBER Digest.  You can sign up to receive the NBER Digest by email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w12687

Users who downloaded this paper also downloaded* these: