For instance, Eurosystem staff 15 calculated that imports of goods from low-wage economies reduced euro area CPI inflation through direct effects and increased competition by 0.16 percentage points per year in the last two decades, although this is thought to be an upper bound. There is also debate as to whether globalisation has contributed to reducing the sensitivity of inflation to domestic output shocks; in other words, to a flatter Phillips curve. In general, ECB calculations show that more integrated economies have a flatter Phillips curve, and, as a consequence, a higher monetary policy sacrifice ratio . However, there is  11  Fo rbes, K. (2019). “Inflation dynamics: dead, dormant or determined abro ad? ”. Bro oking Papers o n Economic Activity, Fall. 12  Bianchi, J. and A. Civelli (2015). “Glo balization and inflation: Evidence fro m a time-varying VAR”. Review o f Eco no mic Dynamics, 18(2), pp.406-433. 13  Fo rbes, K. (2019). “Inflation dynamics: dead, dormant or determined abro ad? ”. Bro oking Papers o n Economic Activity, Fall; and Attinasi, M. A. and M. Balatti (2021). “Glo balization and its implications for monetary po licy”. ECB Economic Bulletin, Issue 4. 14  Kamber, G. and Wo ng, B. (2020). ”Global facto rs and trend inflatio n". Journal o f International Eco nomics, vo l. 122, 103265. 15  ECB Wo rk Stream o n Glo balization (2021). "The Implications o f Glo balisation for the ECB Mo netary Po licy Strategy". Occasio nal Paper no . 263.
At the same time, companies were shifting from just-in-time to just-in-case supply chain management systems. Similarly, the European Investment Bank’s Investment Survey 9 found that half of US companies and one-third of EU ones have reacted to the recent trade disruptions by focusing more on the domestic market. Meanwhile, the McKinsey survey of supply chain leaders worldwide10 found that, last year, 81% of firms adopted dual-sourcing strategies for raw materials (up from 55% in 2021). In other words, the response seems to be moving more in the direction of increased diversification – in terms of suppliers and final demand, and both internally and externally rather than reshoring, at least for the time being. This diversification may, in fact, generate greater macroeconomic stability and less volatility. Second, and linked to the above, countries (including China and the United States) have started to prioritise safety over efficiency. 8  Lagarde, C. (2022). “A new glo bal map: Euro pean resilience in a changing wo rld”. Keyno te speech at the Peterson Institute fo r Internatio nal Eco nomics, April. 9  Euro pean Investment Bank Investment Survey, 2022. 10  Alicke, K., E. Barriball, T. Fo ster, J. Mauho urat and V. Trautwein (2022). Taking the puls e of s hifting s upply chains. McKinsey. 4  A case in point is the “friend-shoring” concept as a strategic objective in the United States, while Europe aims to double its share of global semiconductor production to 20% by 2030. Companies are also reacting.