Lunch seminar: Has Globalisation Reduced Inflation in Europe?
Two of the most remarkable trends in the last two decades have been the considerable slow down in inflation rates and the increasing globalisation. We know that these two trends have been correlated, but exactly how has globalisation affected inflation? At this seminar Gernot Pehnelt will present his forthcoming paper on globalisation and inflation. Gernot Pehnelt is a Research Associate at ECIPE and an associated scholar at the Friedrich-Schiller-University
Two remarkable economic developments in the last two decades have been the sharp slow-down of inflation rates and the sharp increase of globalisation. In the developed as well as the developing world, inflation has come down from double-digit levels and remained surprisingly stable despite the oil and commodities boom. This can also be said of world economic integration – or globalisation. Despite many economic, financial and political worries, economies have continued to integrate at a fast pace. Trade and investment integration is stronger than ever.
What is the relation between the increase of economic integration and the slowdown of inflations rates? In a new paper, ECIPE scholar Gernot Pehnelt has studied the linkages between globalisation and inflation, and found intriguing results. We have known from many other studies that globalisation and inflation are related, but in this paper Pehnelt have examined the linkages in a more systematic way.
Presentation from the conference:
- GlobalizationandInflation in OECD Countries By Gernot Pehnelt