ABSTRACT. Gnan and Valderrama claim that globalization has weakened the link between the domestic output gap and inflation, with the global output gap playing an increasing role for individual countries' inflation developments. Wagner holds that when there is an increase in uncertainty about the transmission mechanism, then the transparency, about what the central bank really does affect, declines. Gavin et al. show that optimal monetary policy in New Keynesian models produces a great deal of uncertainty about inflation at medium to long horizons.