Global currency competition leads to historic decline in worldwide inflation rates
Worldwide inflation has decreased significantly in recent years due to globalization, deregulation, and financial innovation. This competition among currencies has led to better central bank performance, lower inflation, and more stable long-term bond markets globally. The decline in inflation rates has allowed for improved central bank independence, governance, and credibility, resulting in flattened yield curves and reduced future inflation risks. This trend has encouraged long-term planning and investment, especially in emerging markets.