BIS Paper on globalisation and inflation

The BIS Working Paper "Globalisation and inflation: New cross-country evidence on the global determinants of domestic inflation" published 11 May argues that prevailing models of inflation are too "country-centric", in that they fail to take sufficient account of the role of global factors in influencing the inflation process.

There has been mounting evidence that the inflation process has been changing. Inflation is now much lower and much more stable around the globe. And its sensitivity to

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