For this reason, the potential effects of globalisation on inflation dynamics, through its influence on behavioural or structural features of the labour and product markets, deserves close monitoring and further analysis.
The policy relevance of this debate is further complicated by the fact that even if future empirical studies would confirm a significant drop in the responsiveness of inflation to domestic slack in Phillipscurve equations, it is not at all clear whether this should be interpreted as a flattening of the aggregate supply curve in the short term.