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Does Pulumi support something like config flattening, such that you could have something like `base.yaml` that `pulumi.dev.yaml`, and `pulumi.staging.yaml` can share some common values from the base?

That’s right - this is tracked in <https://github.com/pulumi/pulumi/issues/2307>. 

Though note that because it’s just code - you can implement any logic you’d like for how to read and merge config. For example, if you wanted to alway read a `base.yaml` file you can do that. And if you want to allow Pulumi config to optionally overrode that - you can do that too. So you are less deeply dependent on Pulumi config natively supporting this (though we expect to do more here by default in the future). 

In a stack specific settings file (i.e. `Pulumi.dev.yml`), if location is set i.e. `azure-native:location` then resource group location is set automatically and location for resources is derived from resource group location. Now I am trying to apply common tag for all resources i.e. "`CreatedBy: Pulumi`". Is there any way to set common/global tags similar to "`azure-native:location`" ?