I will look at each in turn and will then use the analysis to address another important issue for monetary policy makers: Has globalization been a key driver of improvements in inflation performance and the decline in inflation that we have been seeing throughout the world?
(Please note that my comments here reflect my own views and not necessarily those of others on the Board of Governors or the Federal Open Market Committee.) Globalization and Inflation We should never forget Milton Friedman's adage that "inflation is always and everywhere a monetary phenomenon."