Inflation: Local or Global?

What does the empirical literature say about the sources of inflation movements in an era of globalization?

In a recent ">paper, Borio and Filardo of the BIS fire an opening shot in the debate over the best way to envisage the inflation process. In line with the view that the world is becoming ever more integrated along a number of dimensions, they conjecture a qualitative change in inflation dynamics. In "Globalisation and inflation: New cross-country evidence on the global determinants of domestic inflation", they summarize their results thus:...more>>