(2008), “Globalisation, domestic inflation and global output gaps: Evidence from the euro area”, ECB Working Paper No. 890, finds limited evidence in support of the “global output gap hypothesis” for the euro area. BIS Review 51/2008  3  Orphanides would have quite a few words to say – but, even more fundamentally, to the measure of world output itself.
9 A pre-requirement to assess this hypothesis more thoroughly and, more generally, to assess how global macroeconomic conditions affect domestic inflation, would be to have quarterly world GDP statistics professionally compiled by the statistical department of an international organisation with a broad geographical membership.