This means that we have to ask in what areas global liberalisation and harmonisation is meaningful and how far they should go – and in many areas the answer might be that less is more; that less liberalisation and less harmonisation is better globalisation.
If potential output grows slowly, the equilibrium rate will be low, and therefore the real rate necessary to achieve price stability will also be low, independently of what the central bank does. Unfortunately, the growth rate of potential output in the advanced economies appears to have decreased in the recent years.