Thus, in addition to easing monetary policy, the Federal Reserve has worked to support the functioning of credit markets and to reduce financial strains by providing liquidity to the private sector.
[6] These forces, especially commodity price shocks, can have sizeable effects on price developments. But the evidence suggests that globalisation has only marginal effects on trend inflation. [7] While inflation has fallen across advanced economies over recent decades, its correlation with the pace of globalisation is weak. The sharpest reductions took place in the early 1980s, before globalisation took off (Chart 1).