While we can point to types of goods for which prices are restrained by forces from abroad, the net effects of globalization on domestic inflation of all goods and services 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 paucity of empirical research on this issue, which is understandable given the shortness of the span over which these forces have  1  These views are my own and not necessarily those of other members of the Board of Governors and the Federal Open Market Committee.