During the present, second era of globalization, many countries previously largely outside the international division of labour, have been able to enjoy the benefits of international trade and specialization. The other side of the largely beneficial coin of globalization and interdependence is of course the higher vulnerability to other countries’ economic misfortunes.
No tradeoffs between price and financial stability  1/2  BIS - Central bankers' speeches  The other reason that this is the case is that we [at the central bank] essentially prevented knock-on effects from supply shocks because we were aggressive. We increased the policy rate from 200 basis points (bps) to 625 bps in just nine months.