A front‐​page Wall Street Journal headline, “U.S. Stirs Global Inflation Fears,” claims “A booming U.S. economy… is driving inflation higher around the world and pushing up the U.S. dollar.” It is not clear whether the authors believe a stronger dollar is inflationary (which would certainly be novel) or that U.S. inflation would entice foreigners to trade their currencies for our (which seems equally puzzling). The victims chosen to illustrate either theory – Turkey, Russia, and Brazil – are particularly peculiar. In reality, a rising dollar should have a dampening effect on prices of internationally traded ... (full story)