Nicola Zaniboni PhD Candidate Department of Economics

Contact information: Department of Economics 001 Fisher Hall Princeton, NJ 08544 Email: zaniboni@princeton.edu Telephone: (609) 712-0975

CV [Download]

Research interests:

International Macroeconomics, Monetary Economics, Macroeconomics

JOB MARKET PAPER

“Globalization and the Phillips Curve” [Download]

Abstract: This paper investigates the impact of globalization on inflation in the context of a two-country New Keynesian model. Three questions have been raised in the recent literature: Has globalization lowered long-run inflation? Has globalization affected short-run dynamics of inflation? Has globalization been a source of shocks for the inflation process? I frame these questions in terms of the effects of increased openness on different aspects of open-economy Phillips curves, considering different scenarios for the measure of inflation, and for the assumed export-pricing behavior of firms. The main qualitative prediction of the model is that globalization makes Phillips curves flatter. Quantitatively, the effects of globalization on inflation are modest: increased openness only slightly decreases the slope of Phillips curves, domestic factors are still the main determinants of inflation, and globalization does not lead to a substantial increase in the volatility of shocks to the inflation process.