*  *  *  Thank you for the opportunity to participate in this conference on global imbalances, a topic of growing importance. Although I will touch on global imbalances, I would like to focus on globalization’s potential influence on inflation and the associated implications for monetary policy.
There was a big increase in the economic power of those countries that had already undergone successful industrialization and they underwent a shift toward imperialism. With the expansion of imperialism the Asian countries were degraded to colonies of the Western powers.