Implications of Globalization for Monetary Policy
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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.
Series:
Working Paper No. 2001/184
Subject:
Asset prices Banking Central bank autonomy Central banks Globalization Inflation Output gap Prices Production
English
Publication Date:
November 1, 2001
ISBN/ISSN:
9781451859362/1018-5941
Stock No:
WPIEA1842001
Pages:
62
Please address any questions about this title to publications@imf.org