in driving inflation as globalization increases. We investigate the empirical evidence in favor of this prediction by … inflation in many countries, yet its influence did not become stronger over time. Second, a panel analysis that exploits the … positively related to the effects of global slack on inflation. We conclude that integration in the global economy is in fact …

We develop a theoretical framework to account for the observed instability of the link between inflation and …fiscal … bank that has full control over inflation. When policy makers deviate from this Virtuous regime, agents conduct Bayesian … pessimistic about a prompt return to the Virtuous regime and inflation starts drifting in response to a fiscal imbalance. Shocks …

Under the Globalization Hypothesis for inflation, as globalization increases, global economic slack should … progressively replace the domestic gap in driving inflation. In order to assess the empirical support for this theoretical … prediction, we use impulse response functions of inflation to domestic and foreign output gap shocks from a TV-VAR model …

We develop a theoretical framework to account for the observed instability of the link between inflation and fiscal … bank that has full control over inflation. When policy makers deviate from this Virtuous regime, agents conduct Bayesian … pessimistic about a prompt return to the Virtuous regime and inflation starts drifting in response to a fiscal imbalance. Shocks …