The “surprise” jump in producer and consumer price inflation is not a surprise when you understand the political and economic logic of using one nation’s domestic currency–the U.S. dollar–as international money. Domestically oriented analysts have been fooled because U.S. inflation responds to the world-supply of dollars, not just those in the U.S.
Ethics & Public Policy Center
CPI at 7%? Bet Your Reserve Dollar
Published in Wall Street Journal on February 24, 1989