Fed's Kohn on globalization and inflation

In the speech 'Globalization, inflation, and monetary policy' given on 11 October Donald Kohn of the Federal Reserve said increasingly globalized financial markets may be less forgiving when they think central banks have erred than the domestic-based markets of the past.

Kohn said growing integration in the world economy may help speed productivity growth and hold down inflation, but it had not made his life as a central banker any easier.

"To the extent that the U.S. can more readily draw upon

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