less responsive to the output gap. In other words, globalization induces the monetary authority, when guided in its policy …This paper reviews the analytics of the effects of globalization on the Phillips curve and the utility-based objective … function of the central bank. It demonstrates that in an endogenous-policy set up, when trade in goods is liberalized …

The paper provides a unified analysis of globalization effects on the Phillips curve and monetary policy, in a New … inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …