
Inflation models must pay more attention to globalisation – Brookings paper

Better treatment of globalisation in inflation models will help improve forecasts, a paper published by the Brookings Institution finds.
In the paper, Kristin Forbes examines what role growing globalisation has played in inflation dynamics over the last decade. She analyses several different inflation measures, using data from 31 advanced economies and 12 emerging economies.
Forbes finds that globalisation and its role in determining consumer price index inflation and the cyclical component of
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