US Economy and Globalization Part 12 of 17
Communications technology gives us the tools to get aroundat least partlythe restraints imposed by physical location. It allows businesswomen and men to better Forex Trading Explained manage their cost of goods and services sold, as well as their cost of capital, and to sell to a larger market, in their never-ending search to expand profit margins. That is the good news. The not-so-good news is that demand-pull and cost-push pressures abroad are transmitted more readily and ubiquitously to us at home.
For central bankers, this creates a challenge. We have yet to develop the tool kit we need to understand a technology-driven, seamless, globalized economy well enough to craft monetary policy with the precision we would like. In our eclectic community, we have been debating how monetary policy is affected by globalization, technological and communication innovations, and the implications of the economic evolution into a Forex Trading Strategy services-driven, knowledge-based economy. How do we as policymakers, attempting to influence the course of our respective economies, navigate the economic seas when these new forces are acting like a magnet beside our traditional compass, rendering us unsure as to how far off course we may be veering? Globalization is, in my view, particularly vexing as we seek the true north of inflation control.
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