Implications of Globalization for Monetary Policy

63 Pages Posted: 1 Feb 2006

See all articles by Helmut Wagner

Helmut Wagner

University of Hagen (Fernuniversitaet Hagen)

Date Written: November 2001

Abstract

This paper argues that the implications of globalization for monetary policy come mainly through two channels: On the one hand, the many structural changes that are associated with the globalization process cause an increase in the uncertainty surrounding monetary policy. This includes an increase in uncertainty about how to interpret macroeconomic data/indicators and about the monetary transmission mechanism. On the other hand, by strengthening the process of global economic integration, globalization increases international competition, thereby forcing market players to make structural adjustments or reforms that change the conditions or constraints under which monetary policy is implemented.

Keywords: Globalization, monetary policy

JEL Classification: E5, F0, F4

Suggested Citation

Wagner, Helmut, Implications of Globalization for Monetary Policy (November 2001). IMF Working Paper No. 01/184, Available at SSRN: https://ssrn.com/abstract=880269

Helmut Wagner (Contact Author)

University of Hagen (Fernuniversitaet Hagen) ( email )

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