This warrants close monitoring, in particular given the risks of second round effects. In case of food related commodities, it also underlines the importance of efficient supply side adjustment in agricultural commodity markets. A separate but nonetheless potentially equally important channel through which globalisation can affect inflation involves the indirect price impact of increased competitive pressures, with two main aspects.
It contains additional detail on bank-based monetary policy transmission, inter alia reflecting new research presented at the ECB conference on "Monetary policy pass-through and credit markets" on 27–28 October 2016 (see section on bankbased monetary policy transmission during the crisis) and on the role of other policy domains (see Conclusion).