Implications of Globalization for Monetary Policy

November 1, 2001

Preview Citation

Format: Chicago

Helmut Wagner. Implications of Globalization for Monetary Policy, (USA: International Monetary Fund, 2001) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper argues that the implications of globalization for monetary policy come mainly through two channels: On the one hand, the many structural changes that are associated with the globalization process cause an increase in the uncertainty surrounding monetary policy. This includes an increase in uncertainty about how to interpret macroeconomic data/indicators and about the monetary transmission mechanism. On the other hand, by strengthening the process of global economic integration, globalization increases international competition, thereby forcing market players to make structural adjustments or reforms that change the conditions or constraints under which monetary policy is implemented.

Subject: Asset prices, Banking, Central bank autonomy, Central banks, Globalization, Inflation, Output gap, Prices, Production

Keywords: Asset prices, Central bank autonomy, Exchange rate, Global, Globalization, Globalization process, Inflation, Loss function, Monetary policy, Open economy, Output gap, Price level, Rate of inflation, Target regime, Transmission mechanism, WP

Publication Details

Pages:

62
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/184
Stock No:

WPIEA1842001
ISBN:

9781451859362
ISSN:

1018-5941

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