Global value chains and the Phillips curve: A challenge for monetary policy

IF 2.8 2区经济学 Q1 ECONOMICS

European Economic Review Pub Date : 2025-02-08 DOI:10.1016/j.euroecorev.2025.104966

Anna Florio , Daniele Siena , Riccardo Zago

引用次数: 0

Abstract

This paper studies how participation and position in Global Value Chains (GVCs) affect the slope of the Phillips Curve (PC) and, consequently, the ability of monetary policy to control inflation. Using data from the European Monetary Union (EMU) and value added measures of GVCs, we show that, beyond the role of trade openness, higher participation leads to a flatter PC. This evidence is consistent with the theoretical literature emphasising how globalisation can reduce the sensitivity of prices to unemployment due to stronger strategic complementarities, to higher market power and to imperfect exchange rate pass-through. On the other hand, the role of GVC position is not statistically significant.

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全球价值链和菲利普斯曲线：对货币政策的挑战

本文研究了全球价值链的参与和地位如何影响菲利普斯曲线（PC）的斜率，从而影响货币政策控制通胀的能力。使用来自欧洲货币联盟（EMU）的数据和全球价值链的附加值指标，我们表明，除了贸易开放的作用之外，更高的参与度会导致更平坦的PC。这一证据与强调全球化如何降低价格对失业的敏感性的理论文献是一致的，这是由于更强的战略互补性、更高的市场力量和不完全的汇率传递。另一方面，GVC位置的作用不具有统计学意义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

European Economic Review ECONOMICS-

CiteScore

4.70

自引率

3.60%

发文量

170

期刊介绍： The European Economic Review (EER) started publishing in 1969 as the first research journal specifically aiming to contribute to the development and application of economics as a science in Europe. As a broad-based professional and international journal, the EER welcomes submissions of applied and theoretical research papers in all fields of economics. The aim of the EER is to contribute to the development of the science of economics and its applications, as well as to improve communication between academic researchers, teachers and policy makers across the European continent and beyond.