Volume 6, Issue 1 March 2010

Inflation Pressures and Monetary Policy in Global Economy

Abstract

What can estimated reduced-form inflation equations teach us regarding the role of global factors as determinants of inflation? Very little, according to modern monetary theory. I illustrate this claim by exploring the channels through which global factors influence inflation in the small open economy of Galí and Monacelli (2005).

Authors

  • Jordi Galí

JEL codes

  • E31
  • F41
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Other papers in this issue

Cross-Border Spillovers from Fiscal Stimulus

Giancarlo Corsetti and André Meier and Gernot J. Müller

Fiscal Stimulus and the Promise of Future Spending Cuts

Volker Wieland

Has Globalization Changed the Phillips Curve? Firm-Level Evidence on the Effect of Activity on Prices

Eugenio Gaiotti

The Zero Lower Bound and Monetary Policy in a Global Economy: A Simple Analytical Investigation

Ippei Jujiwara and Nao Sudo and Yuki Teranishi

Limitations on the Effectiveness of Forward Guidance at the Zero Lower Bound

Andrew Levin and David López-Salido and Edward Nelson and Tack Yun

Commentary on Policy at the Zero Lower Bound

Christopher A. Sims

Policies to Rebalance the Global Economy After the Financial Crisis

Charles Freedman and Michael Kumhof and Douglas Laxton and Dirk Muir

Using Models for Monetary Policy Analysis

Carl E. Walsh

Introduction

Giancarlo Corsetti and Andrew Lewin and Frank Smets and Carl Walsh