This aspect of the globalization hypothesis, however, would be bolstered if the decline in the sensitivity of inflation to domestic demand was accompanied by an increased sensitivity to foreign demand. Efforts to find such a link have met with mixed results, with some researchers having found large effects and others having found no effect.
All these developments herald significant opportunities to re-engineer the operations of governments and business and transform lives and livelihoods. Indeed, we are at the cusp of the Fourth Industrial Revolution, whose transformative powers are already evident in the financial sector, and will transform the way we live, work, and relate to one another.