Increased flow of trade, know-how, people and ideas bridged the technology gap, improved institutional capacity and accelerated the accumulation of physical and human capital in emerging markets. The result was higher growth and lifting of millions out of poverty. 4. More importantly, globalisation-led productivity gains contributed to  a trend decline of inflation across countries.
More and more countries, including emerging market economies (EMEs), strengthened their monetary policy frameworks with a number of them adopting inflation targeting. There was growing talk of globalisation leading to sustained disinflationary forces, technology diffusion and competition. We witnessed low and stable inflation in advanced economies (AEs) and several EMEs beginning the 1990s and through the second decade of the new millennium. 5.