Globalization in recent years has not only enabled hundreds of millions of people in countries like China and India to escape abject poverty  BIS Review 108/2007  3  (income of less than $ per day) but has also helped economies like ours in the United States to be highly dynamic, which is essential to our future economic well-being.
Globalization and the monetary transmission mechanism Four questions naturally arise when we consider whether globalization has changed the monetary transmission mechanism, that is, how monetary policy influences inflation and output: (1) Has globalization led to a decline in the sensitivity of inflation to domestic output gaps (the difference between actual and potential output) and thus to domestic monetary policy?