Abstract
Inflation started to rise in 2021 in most countries, following almost two decades of moderation. There is consensus that the main drivers of current inflation are related to global variables, in particular disruptions in global value chains, input shortages in key manufacturing sectors, and rising energy and food prices. Aside from current discussions about whether these shocks are temporary in nature and whether inflation will normalize once the effects of the pandemic and geopolitical tensions have subsided, the question of the medium‑term impact of globalisation on price dynamics remains open (Blanchard, 2020)
This article aims to contribute to current debates by re‑examining the relationship between globalization and inflation. In an open economy, external shocks affect domestic economic and financial conditions. Therefore, the question of whether the globalization process will continue to progress and what long term impact will it have on inflation remains crucial. In order to shed light on this issue, this article discusses the following questions: what are the channels through which globalisation affects inflation? To what extent was globalisation responsible for the pre‑pandemic low levels of inflation? What can we learn from the past to better understand the current situation?