Some have argued that globalisation does indeed dilute monetary policy’s effectiveness through its impact on the structure and functioning of markets, while it also pitches global factors as more prominent drivers of domestic outcomes. Others have pointed to the benefits emanating from risk-sharing and reduced volatility in financial markets, as globalisation, helps to increase liquidity in financial markets, for example.
As with everything, one could argue equally for both sides on the costs and benefits of globalisation, but, needless to say, impacts will differ across countries and regions depending on, among others, the level of development of their financial markets, the openness of their economies, and the credibility of their monetary and fiscal authorities.