These policies have had huge benefits – not only the achievement of low and stable inflation but also an improvement in the overall performance of the economy. Globalization, however, may have helped reduce inflation in more-subtle ways.
By fostering increased interactions among central banks, academics, and the public in many different countries, globalization has helped spread a common culture that stresses the benefits of  4  A qualification of this point is that even as the share of imports in U.S. spending has risen, the pass-through of exchange rates into import prices has declined.