It provides justification for the behavior of those central banks that think and talk of monetary policy purely in terms of the policy interest rate and other financial return variables, but not of the money stock.
We should respond with policies designed to use opportunities of globalization, particularly to increase productivity and growth, while minimizing unavoidable adjustment costs. The right answer to globalization and international competition is therefore to continue and intensify the structural reform process. Standstill would be detrimental.