Price stability is among primary central bank objectives. However, the entanglement of global market dynamics implies that no economy exists in isolation, meaning one country’s green energy policies, maritime shipping disruptions, or even its artificial intelligence use, becomes equally significant in influencing another country’s inflationary outlook.
Experts often debate about price export mechanisms, evaluating factors such as exchange rates and trade relations in determining how costs in one economy influence other markets. Such discussions are garnering investor attention. Consumer prices in China recently contracted for four consecutive readings, translating into deflationary pricing for economies like the US and EU that import those goods, according to Alicia Garcia Herreo, chief...
