A major problem with Rogoff's argument is that instead of steepening with the growth of globalization in recent years, the Phillips curve has become flatter, not only in the United States but also in many other countries throughout the world (Borio and Filardo, 2007; International Monetary Fund, 2006; Ihrig and others, 2007; Pain, Koske, and Sollie,  1  I want to thank Steven Kamin and Jaime Marquez for their helpful comments and assistance on this speech.
BIS Review 108/2007  1  2006). Therefore, even though Rogoff's argument is reasonable from a theoretical viewpoint, it is hard to make the case that it is important in the current economic environment. Globalization, because it makes markets more competitive, also has the potential to spur productivity growth.