Machine generated contents note: List of figures; List of tables; List of contributors; Preface Jürgen Stark; Acknowledgements; 1. Globalisation and macroeconomic performance Robert Anderton and Geoff Kenny; 2. The impact of globalisation on the euro area macroeconomy Robert Anderton and Paul Hiebert; 3. Trade and foreign direct investment in business services: a modeling approach James R. Markusen; 4. Entry dynamics and the decline in exchange-rate pass-through Christopher Gust, Silvain Leduc and Robert J. Vigfusson; 5. Does the exchange rate belong in monetary policy rules? New answers from a DSGE model with endogenous tradability and trade frictions Michael Kumhof, Douglas Laxton and Kanda Naknoi; 6. Globalisation and inflation in the OECD economies Isabell Koske, Nigel Pain and Marte Sollie; 7. Globalisation and euro area prices and labour markets: some evidence on the impact of low-cost countries Gabor Pula and Frauke Skudelny; 8. Monetary policy strategy in a global environment Philippe Moutot and Giovanni Vitale; 9. How globalisation affects euro area adjustment Marco Buti; 10. Monetary policy in a global economy: past and future research challenges John B. Taylor; Index.

"The process of globalisation has been ongoing for centuries, but few would doubt that it has accelerated and intensified in recent decades. This acceleration is evidenced as much by the strong synchronicity in the rapid transmission of financial crises starting in late 2007 as it is by the decade of almost unprecedented growth in international trade and financial market liberalisation that preceded it. This book shows how the international economy has become more connected via increased production, trade, capital flows and financial linkages. Using a variety of methodologies, including both panel econometrics and DSGE modelling, a team of experts from academia, central banks and the IMF examine how this increased globalisation has affected competitiveness, productivity, inflation and the labour market. This timely contribution to the globalisation literature provides a longer-term perspective while also evaluating some of the potential implications for policy makers, particularly from a European perspective"--