Report Detail Summary

Bernanke, Inflation and the Dismantling of the Price Rule

November 03, 2010

We worry about the transmission of the inflationary pressure to the rest of the world. We believe this will come about through exchange rate management. As the U.S. inflation rate begins to pick up, the dollar will depreciate and foreign central banks will try to prevent the dollar depreciation by deprecating their own currencies. The simplest way to do so is for these countries’ central banks to inflate their own economy.

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