Fed's Kroszner on globalization & capital markets

In the speech 'Globalization and capital markets: Implications for inflation and the yield curve' given on 16 May Randall Kroszner of the Federal Reserve said the ease that investors can move money around the globe has spurred a "currency competition" among nations.

"The combination of lower and less-volatile inflation worldwide has reduced inflation expectations and perceived inflation risk and resulted in a lower premium in long rates for inflation uncertainty," Kroszner said.

"I believe that

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