In particular, the entry of China, India, and others into the global trading system probably has exerted a modest disinflationary force on prices in the United States in recent years.
Moreover, we should recognize that these could be one-off effects to the extent that they reflect the global imbalances that I will speak about next, rather than just the integration of emerging-market economies into the global-trading system. If so, any disinflationary effects could dissipate or even be reversed in coming years.