Summary of The Globalisation of Inflation

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

The Globalisation of Inflation  summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Analytical
  • Innovative
  • Well Structured

Recommendation

Traditional measures of inflation once largely depended on a nation’s economic conditions and the relative play among its supply, demand and output pressures. However, since the extensive proliferation of global value chains, some experts think that the international economic system can now measurably affect an economy’s domestic inflation. Economists Raphael Auer, Claudio Borio and Andrew Filardo investigate that idea in this in-depth empirical study. Their findings suggest that global production dynamics could have a significant impact on a country’s internal prices. getAbstract recommends this rigorous, scholarly report to economists, analysts and policy experts concerned about the viability of national monetary policy and control.

About the Authors

Raphael Auer, Claudio Borio and Andrew Filardo are economists at the Bank for International Settlement.

 

Summary

Globalization has taken center stage as a defining influence in the international economy. One function of the complex web of global value chains (GVCs) is to avoid bottlenecks by moving processes among countries with “slack” – available labor and other resource capacities. Supply chains are now inextricably linked on a global scale. But one consequence of this dynamic is that global slack then affects national levels of output and prices and hence, inflation. This situation counters traditional economic thinking, in which...


More on this topic

Customers who read this summary also read

Former Fed Chair Janet Yellen on why the answer to the inflation puzzle matters
9
The Great Inflation Mystery
9
World Economic Outlook April 2017
7
What Is “Average Inflation Targeting”?
8
Policies to Ensure Asia’s Sustained Economic Success
7
What the Federal Reserve Got Totally Wrong about Inflation and Interest Rate Policy
8

Related Channels

Comment on this summary