First, uneven distribution of benefits of globalization, combined with increased feeling of job insecurity, is starting to erode also middle classes' support for globalization in some countries, notably in the United States. This disillusionment of the key segment of the electorate raises the specter of protectionism.
The Federal Reserve has not yet formally adopted a precise, operational price stability or inflation target (though implicitly a target for core inflation at 1.75%-2% has recently been used). We have found the selection and announcement of a quantitative definition of price stability extremely important for policy formulation as well as for guiding and anchoring inflation expectations to price stability.