Icky
03-05-2007, 03:31 PM
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Bernanke Says Globalization May Push Inflation Higher (Update1)
By Craig Torres and Vivien Lou Chen
March 3 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said increased global links between economies may have helped spur U.S. inflation.
Booming demand for energy and commodities by China and other countries has contributed to the surge in their prices in recent years, Bernanke said in a speech at the Stanford Institute for Economic Policy Research in Stanford, California, late yesterday. This dynamic may offset the effect of trade in slowing price increases on manufactured goods, he said.
``When the offsetting effects of globalization on the prices of manufactured imports and on energy and commodity prices are considered together, there seems to be little basis for concluding that globalization overall has significantly reduced inflation,'' said Bernanke. ``Indeed, the opposite may be true.''
Bernanke said Fed policy makers must increasingly analyze international economic developments in determining monetary policy. At the same time, he concluded that globalization hasn't reduced the U.S. central bank's control over monetary policy.
``Globalization has not materially affected the ability of the Federal Reserve to influence financial conditions in the United States,'' said Bernanke, 53. He didn't mention financial markets, current economic conditions or the path of interest rates in his prepared remarks.
In response to a question after the speech, Bernanke reiterated that the central bank sees no ``spillover'' from rising delinquencies in subprime mortgages. ``We're obviously going to watch it very carefully,'' he added.
I thought we were told that Globalization was supposed to keep inflation LOW because we were able to acquire the same "stuff" but for less money...
Or have we always been at war with EastAsia???
I can't remember
Bernanke Says Globalization May Push Inflation Higher (Update1)
By Craig Torres and Vivien Lou Chen
March 3 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said increased global links between economies may have helped spur U.S. inflation.
Booming demand for energy and commodities by China and other countries has contributed to the surge in their prices in recent years, Bernanke said in a speech at the Stanford Institute for Economic Policy Research in Stanford, California, late yesterday. This dynamic may offset the effect of trade in slowing price increases on manufactured goods, he said.
``When the offsetting effects of globalization on the prices of manufactured imports and on energy and commodity prices are considered together, there seems to be little basis for concluding that globalization overall has significantly reduced inflation,'' said Bernanke. ``Indeed, the opposite may be true.''
Bernanke said Fed policy makers must increasingly analyze international economic developments in determining monetary policy. At the same time, he concluded that globalization hasn't reduced the U.S. central bank's control over monetary policy.
``Globalization has not materially affected the ability of the Federal Reserve to influence financial conditions in the United States,'' said Bernanke, 53. He didn't mention financial markets, current economic conditions or the path of interest rates in his prepared remarks.
In response to a question after the speech, Bernanke reiterated that the central bank sees no ``spillover'' from rising delinquencies in subprime mortgages. ``We're obviously going to watch it very carefully,'' he added.
I thought we were told that Globalization was supposed to keep inflation LOW because we were able to acquire the same "stuff" but for less money...
Or have we always been at war with EastAsia???
I can't remember