They assign less importance to the gap between aggregatedemand and supply in determining inflation, and more importance to the stance of monetary policy.
Perhaps the best way to determine China's impact on world inflation is to gauge whether its net impact is to increase aggregate global demand or supply.
When coupled with progress in the housing industry and resilient consumer demand these are key elements in shaping the profile of aggregatedemand and supply in the US as well as pinpointing the improved efficiency in the allocation of resources.