Inflation and Global Markets: Some Introductory Notes

Abstract

The subject of this article is to assess the impact of globalization in the markets of tradable goods on the dynamics and manageability of inflationary processes. The main purpose of the article is to develop a methodology for identifying the causes and consequences of inflationary processes in the context of globalization and deglobalization of the economy. The relevance of this study is due to the low sensitivity of inflationary processes in the world to the impacts of monetary policy tools, including non-conventional measures, on them. Given the impossibility of effective application of monetary rules to coordinate inflationary processes, it is advisable to systematize modern approaches to determining the causes of inflation. At the same time, it is advisable to pay special attention to global factors in the development of inflationary processes, since it is the destruction of established value chains that is often associated with the increase in inflationary pressure on the global economy. The novelty of the study is to choose and justify a new classification of factors that affect the development of inflationary processes, as well as to identify the role and place of the situation in global markets in the system of these factors. The most important applied result of the work done is to identify the links between the liquidity of the global commodity market segment and the possibility of applying exchange rate management policies to affect the inflation rate. In terms of the effectiveness of conventional anti-inflation policies, this means that a country’s export structure can lead to the inability of anti-inflation policies.