According to new research on the role of the U.S. dollar from Harvard, cited by Fed Vice Chairman Stanley Fischer, the U.S. economy is fairly insulated from foreign
inflation / deflation pressures
via exchange rates, implying that policymakers should be less worried about global deflation pressures.
Inflation is also influenced by the effect that changes in interest rates have on imported goods prices, via the exchange rate, and through their effect on inflation expectations more generally in the
Inflation is also influenced by the effect that changes in interest rates have on imported goods prices,
via the
exchange rate, and through their effect on
inflation expectations more generally in the
inflation expectations more generally in the economy.