Globalization and technology have undoubtedly exerted downward pressure on prices. Such factors have been at play for some time, though, and may account in part for the slow decline of inflation in recent decades, but for the very same reason they cannot explain the rapid decrease of recent years. Moreover, globalization has been slowing lately, not accelerating.
This has happened with integration through global value chains: the share of export value added generated outside the exporting country has ceased to grow worldwide since the onset of the crisis in 2008 (Figure 3).