Last year, food prices also increased exceptionally rapidly by recent standards, and the foreign exchange value of the dollar weakened.
So do institutional investors such as banks, multinational corporations and central banks that need to hedge against foreign currency value fluctuations.
For the next 18 years, the Federal Reserve loosely followed a de facto price rule by targeting commodity prices including the price of gold and the foreign exchange value of the dollar.
To achieve price stability, it would require the Fed to monitor a full range of asset prices including not only goods and services, but also the price of gold and the foreign exchange value of the dollar.
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If the Fed chooses to reduce the real burden of the debt via inflation, the purchasing power of money will fall along with the foreign exchange value of the dollar, and those who trusted in U.S. public debt will suffer.
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What would have been the impact on commodity prices and the foreign exchange value of the dollar if the Fed had increased the money supply by a factor of eight (rather than a factor of three) in a bit more than four years?
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" Speaking via satellite from Washington to the International Monetary Conference in Barcelona, Spain, Bernanke also noted that even though the foreign exchange value of the dollar has been relatively stable in recent months, "the possibility that commodity prices will continue to rise is an important risk to the inflation forecast.
During the Obama recovery the dollar has lost 10% of its value against major foreign currencies and 39% of its value versus gold.
This is because a strong yen makes Japanese exports more expensive for foreign buyers, and also cuts the value of exporters' foreign profits.
Of late, the 5 percent decline in the dollar vs. the euro raises translation value for foreign earnings into dollars.
He could make the case that he includes small cap, foreign, and a value tilt, which may push the return higher.
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Little green pieces of paper have little value to foreign companies.
We think the Fed underestimates this linkage, in part by using the trade-weighted value of the dollar rather than the absolute value (the trade-weighted dollar mixes together changes in the dollar with changes in the value of foreign currencies).
Although the U.S. Congress is likely to impose a cap-and-trade system after the presidential election later this year, proposed legislation by U.S. senators Joseph Lieberman and John Warner would limit the value of foreign credits by allowing U.S. companies to use them to cover only 15% of their emissions.
Putting aside for a moment the moral and security dimensions of this matter, I use the term "material" with regard to these non-financial concerns because of the advent of South African apartheid-type divestment campaigns and the prospect of economic sanctions against proliferators or other offenders which could impact adversely on the value of foreign equity and debt holdings (e.g. the Talisman case).
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Estimates for the levy range from 0.1% to 1% of the value of each foreign-exchange transaction.
Nearly two-thirds of these, by value, involved foreign firms, such as Britain's Bass, which bought a hotel chain from the troubled Saison group.
Olympus's net loss narrowed as a weaker yen boosted the value of its foreign-currency assets, though soft digital-camera sales still hurt its bottom line.
"You can save between 1% and 4% on the value of the foreign money you are buying, depending on the amount being moved, " says Matthew Knowles at HiFX.
Among the risks, he said, was that the kyat would keep increasing in value as more foreign dollars rush in to take advantage of business opportunities there, hurting exports.
But spurred by a succession of foreign securities that have lost value as a result of divestment campaigns, the prospect of official economic sanctions, negative media attention, and coordinated opposition to initial public offerings, the SEC has changed its tune.
While there are moments when the dollar has strengthened, causing investor to lose value on their foreign local currency bonds, the overall trend remains in their favor, with the biggest risks to the upside, Barclays has said in similar reports recently.
For those of you who are betting big on foreign stocks as your protector when inflation erodes the value of the dollar, you might want to note that foreign stocks significantly underperformed domestic stocks in two of these three periods.
Thus, taxation of foreign income would dramatically increase the value of these writeoffs.
Mr. FITZPATRICK: Germany places a great value on European common foreign policy, and so it is willing to go along with the British and the French.
In services, foreign-owned companies generated double the value added per worker, and had labour costs 30% higher.
Four years ago Poland floated its currency, the zloty, saying that the foreign-exchange markets could decide its value.
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Since 2008, The Value Line Index has outperformed foreign markets by 50 percent.
In addition, the rapid expansion of the money supply causes the currency to lose value against hard assets and foreign currencies.
They also bolster equity values and, by encouraging international capital to look elsewhere, reduce the value of the dollar in foreign-exchange markets.
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