In the shorter run, we at the Federal Reserve aim to achieve our dual mandate of not only stabilizing prices but also reducing the volatility of output and employment around their maximum sustainable levels.
Globalization affects the ability of monetary policy makers to stabilize prices and output in two ways: (1) through its effects on the behavior of inflation and output and (2) through its effects on the ways in which monetary policy influences inflation and output – that is, on the monetary transmission mechanism.