This essay reviews some of the issues we see as crucial to advancing our understanding of globalization's implications for U.S. monetary policy and highlights some of the research we have been doing to shed light on these issues.

Central bank independence has never been more important, ensuring that central bankers are able to deliver on their mandates.

"We document the response of the individual components of the Producer Price Index (PPI) to commonly used measures of monetary shocks, and show that these responses are at variance with many widely-used macro models of monetary non-neutrality. Monetary shocks are shown to have large relative...