Publication
Oct 2011
The period of imported price stability in the advanced economies, which has partially resulted from low production costs in China, may be coming to an end as inflation in that nation starts to accelerate. This Policy Brief argues that if this occurs central banks will face a trade-off between stabilizing inflation and supporting demand. However, imported higher inflation may not mean lost benefits from globalization, especially if other emerging markets help reduce inflationary pressures on the advanced economies.
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English (PDF, 8 pages, 215 KB) |
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Author | Klaus-Jürgen Gern, Björn van Roye, Joachim Scheide |
Series | Kiel Institute Policy Briefs |
Issue | 36 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2011 The Kiel Institute for the World Economy |