The Fed has a dual mandate to keep inflation under control and stabilize employment.
What would determine the supply of dollars and inflation under the Republican proposal?
Inflation is an ugly word in Brazil, and it is currently hovering around 6% after years of inflation under 5.1%.
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QE3 could conceivably make it harder for the big emerging markets like China and Brazil to keep inflation under control.
Today, with inflation under control, a stabilised currency and an economy growing at a healthy rate, the outlook is rosier.
The Bank of England has already increased interest rates four times in the past six months to keep inflation under control.
Last year, with inflation under control and exports growing at a 4.2% clip, lending at Bancolombia, the country's biggest bank, grew 30%.
Up until Thursday the ECB has been making itself unpopular with European businesses by sticking to its guns and concentrating on keeping inflation under control.
With inflation under control, central banks are inclined to keep interest rates low and thereby unwittingly accommodate an unsustainable boom in credit and asset prices.
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Meanwhile, Federal Reserve Board members hunt for inflation under every rock.
Credit and commerce collapsed under the resulting inflation and distrust, barter returned to poorer parts of the empire like northwestern Europe, and land values there plummeted.
But more important for Ms Rousseff's overall popularity will be keeping inflation under control and ensuring that a necessary cooling of the economy does not descend into stagnation.
Now, with massive stimulus in the past, inflation under control, and real estate no longer rising in the double digits, China looks like it has neared its bottom.
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For that reason, anybody who is thinking of retirement should consider holding off on those plans until a new Fed Chairman appointed by Romney gets inflation under control.
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The central bank has been cautious on cutting interest rates fearing a premature easing could waste its efforts over the past three years to bring inflation under control.
The bill for payroll and pensions has risen far faster than inflation in recent years, with the task of keeping inflation under control left entirely to monetary policy.
In return for the bailout, Bangkok must meet certain stringent conditions -- such as reducing the current-account deficit and keeping inflation under control -- through a tough austerity program.
With inflation under control, the Central Bank was able to slash six zeros off the currency so that it no longer cost a million liras to buy a loaf of bread.
With inflation under much better control, floating exchange rates (China is a big exception) and well-stocked foreign-exchange reserves now dominate in the emerging world, providing protection against falling exports and flighty foreign investors.
When Mark Carney, the new governor of the Bank of England, takes over from Sir Mervyn King in July, he will face the difficult task of keeping inflation under control while also stimulating the faltering UK economy.
Input cost inflation fell to its lowest level in two-and-a-half years, while output price increases moderated to their slowest pace since Q3 2010, bringing a much needed break from relentless inflation. (Read Mantega: Inflation Under Control In Brazil).
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The ECB last raised its key rate to 3.75% in March and Trichet's comments after the Bank's last meeting in May that "strong vigilance" was needed to keep inflation under control, were taken as a signal that rates would go up this month.
After bringing inflation under control during the Carter years with monetary tightening, Paul Volcker (appointed by President Carter and re-appointed by President Reagan) had plenty of room to reverse course, cutting short-term interest rates from around 20 percent in 1982 to around 6 percent in 1988!
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With average money market rates under 1 percent, inflation over 3 percent is a serious problem.
The 10-year Treasury yield is just under the latest annual inflation rate of 1.7%.
Bulliard said that keeping inflation and inflation expectations under control is "rule No. 1" for a central bank.
The central bank last Thursday kept its interest rate unchanged and said it was confident inflation was under control.
Right now the Fed feels inflation is under control, so it can focus on the employment mandate, analysts said.
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Unemployment fell from highs of nearly 20% and inflation come under control, but incomes and living standards remained low.
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