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The Fed should wait for proof on inflation
Kenneth Rogoff doubts on Janet Yellen's expectations that inflation is around the corner. Falling oil prices is considered as a factor which supports low inflation rate. For me it is not clear whether say 2% rate increase will produce deflation. I read that some emerged market countries wish that Fed will raise interest rate. It might they expect less liquidity of the dollar will lessen USD pressure on local currency.http://www.bloomberg.com/news/articles/ ... ld-do-next
The Fed should wait for proof on inflation
I hope he didn't use a spreadsheet for his calculations this time.P
The Fed should wait for proof on inflation
Probably the first question is that It is well known fact that pumping money in economy should lead to inflation in internal market and should pushe exchange rate down. It has not been observed with usd and the question is why classic theory does not work. My subjective point is that there is a demand for usd over the world because usd is a primary currency for world market trades and this phenomena is actually is a reason to store usd and usd denominated bonds as a protection.
Last edited by list1 on September 18th, 2015, 10:00 pm, edited 1 time in total.