Publication - The globalisation of inflation: the growing importance of global value chains - by Raphael Auer, Claudio Borio and Andrew Filardo
At the heart of the globalisation of inflation (GI) hypothesis is the view that the factors influencing domestic inflation have become increasingly global. One implication of this hypothesis is that global, and not just domestic, measures of economic slack should be relevant determinants of domestic inflation and that their role should have increased with global economic integration (eg Borio and Filardo (2007)).