Globalization No Impact on Inflation

Manila Bulletin, March 5, 2007 | Go to article overview

Globalization No Impact on Inflation


Byline: JEANNINE AVERSA

WASHINGTON (AP) -- Globalization has not hobbled the Federal Reserve's ability to influence economic activity at home by lowering or raising interest rates, Fed Chairman Ben Bernanke said.

Yet, Bernanke said Friday, increasingly connected financial markets around the world has certainly complicated the Fed's ongoing job of analyzing financial conditions and weighing their implications for monetary policy.

Those thoughts were contained in a scholarly speech Bernanke delivered to an economic summit in California. Copies of his remarks were distributed in Washington.

"Globalization of financial markets has not materially reduced the ability of the Federal Reserve to influence financial conditions in the United States," as some have argued, Bernanke said.

However, "globalization has added a dimension of complexity to the analysis of financial conditions and their determinants which monetary policymakers must take into account," he told the summit held by the Stanford Institute for Economic Policy Research.

In his prepared remarks, Bernanke did not provide any fresh insights on Tuesday's worldwide stock market meltdown, when the Dow Jones industrials suffered a 416-point plunge.

The sell-off was stoked by investors' fears about the economic health of global powerhouses, the United States and China.

The Fed chief's calming comments one day later helped Wall Street to bounce back. Then stocks started sagging again, with the Dow down 120 points on Friday alone.

Bernanke, in his speech, also did not discuss the future course of interest rates in the United States.

The Fed had steadily boosted rates for two years to fend off inflation. With economic growth slowing and some signs that inflation is improving, the Fed has left rates alone since August.

Many economists think the Fed will leave rates where they are for much of this year. Wall Street investors predict the Fed's next move will be a rate cut _ perhaps later this year.

One of the Fed's main jobs is to make sure that inflation does not get out of hand.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Globalization No Impact on Inflation
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.