Topic > Evaluating research on the impact of globalization on…

This is because these models do not take into account the fact that globalization plays a role in how companies set prices; instead they presume to rely exclusively on their national economy (The Economist, 2005). While this might suggest that globalization has been able to combat the nature of inflationary errors by central banks, this could allow them to explode again. (The Economist, 2005). This is partly due to the fact that a number of central banks make their decisions based on the actions of other central banks such as the Federal Reserve in the United States (Rogoff, 2006). An example of this would be the fact that a number of Asian and oil-producing countries will stabilize their currencies against the US dollar, implying that policies implemented by the Fed can still impact global interests.