Indeed, the effects of globalization on domestic inflation need not even be negative, especially in today’s environment of strong global growth. One challenge in assessing the effect of increased globalization is the lack of research on this issue. At a research conference on modeling inflation held at the Federal Reserve Board last fall, none of the papers even touched on issues related to globalization.
And, although some new and interesting research is emerging from places like the International Monetary Fund and the Bank for International  1  For example, Richard W. Fisher (2005), "Globalization and Monetary Policy," Warren and Anita Marshall Lecture in American Foreign Policy, Harvard University, November 3; and Janet L. Yellen (2006), "Monetary Policy in a Global Environment," speech delivered at The Euro and the Dollar in a Globalized Economy Conference, University of California at Santa Cruz, May 27.