The ongoing global financial market turmoil as well as the rising global commodity prices is reminiscent of the fact that nowadays, no economy is sheltered from shocks stemming from outside its territory. While we all recognise that globalisation has provided for great opportunities, well, it has also brought with it challenges.
These factors include supply shocks, labor market structure, economic conditions at the start of the disinflationary episode, how “well anchored” are inflation expectations, and the speed at which a disinflation is carried out. Even so, the authors are thorough in what they do.