OECD Expert Briefing: Genie in a Bottle? Globalization, Competition, and Inflation
>> Read the working paper
Declining inflation coupled with rising global competition over the past few decades has led to a debate on the importance of globalization for domestic inflation. What are the implications of global value chain integration and market contestability for inflation?
A new working paper from the OECD economics department shows evidence that rising participation in global value chains has contributed to lower inflation in importing countries -- especially when low-wage countries are integrated in supply chains -- by increasing the ability of firms to substitute domestic inputs with cheaper foreign equivalents. However, stalling globalization together with stronger aggregate demand and declining market contestability could lead to inflationary pressures in the medium term, thereby letting the inflation genie out of the bottle.
Join us on Wednesday 18th April at the OECD Washington Center for a presentation and discussion about the latest working paper from the OECD Economics Department, ‘A genie in a bottle? Globalization, competition and inflation’.
9:15-9:30 – Registration and coffee
9:30-9:35 – Welcome remarks
9:35-9:55 – Presentation by Luiz De Mello. Director, Policy Studies Branch, OECD Economics Department
9:55-10:30 – Discussion