Global factors and low inflation The increasing globalisation of the world economy – the breaking down of barriers between product and factor markets – has been a major contributor to low inflation in advanced economies.2 Globalisation over the past ten years has had many aspects.
A year ago we published our Report on Enhancing Market and Institutional Resilience, which set out a plan of action for strengthening the system in such areas as prudential regulation, transparency, the role of credit rating agencies, and international cooperation in the supervision of large complex groups.