If I asked the simple question, "Is EM inflation higher than US inflation?", most would say that EM inflation is higher. It has been, and always will be, yet the reality is different. US inflation has been higher than EM for almost 5 years. That is right. The Fed manages an inflation regime that is worse than that of the combined EM economies, and the gap is widening. Do you have to wonder why the dollar is falling?
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