(THREAD) Average inflation rates have declined and shown lower volatility in recent decades, says ECB Chief Economist Philip R. Lane. Common shocks, structural changes and monetary policy regimes have contributed to the observed high correlation of inflation across countries 1/5 
Structural change associated with globalisation may have contributed to greater co-movement in headline inflation outcomes, but economic globalisation can also be a source of divergent inflationary pressures, especially during adjustment phases 2/5
The contribution of economic globalisation to higher inflation co-movements may differ between phases in which globalisation acts as anti-inflationary force and phases in which globalisation acts as pro-inflationary force 3/5
The convergence of monetary policy regimes has played a central role in the convergence of medium-term inflation outcomes 4/5
The challenge for central banks is to ensure that monetary policy strategies successfully protect the medium-term inflation aim. Accordingly, the monetary policy strategy review remains a high priority for the ECB ecb.europa.eu/press/key/date… 5/5
