Perhaps the Fed has not been exporting inflation directly, but the USA certainly has. Trillions of dollars have left the country due to our staggering trade deficits. When they're not here, they don't contribute to inflation here.
There are many problems with trade deficits, although I'm not sure a monetary basis for global inflation is among them.
To the extent that dollars are used to purchase consumer goods and services, either here or abroad, by the monetarist equation (MV=PQ), the more dollars there are at a given quantity of goods and services the higher the price.
However, for countries like the UK, Germany, and China, any flow of dollars as a result of trade deficits would produce not inflation but currency appreciation of the local currency, as those dollars would have to be converted into pounds, euros, or yuan before being spent.
What is true is that, prior to the pandemic and the collapse of money velocity in the United States, much of the "excess" money created wound up not in US asset and financial markets but in emerging economies and developing nations. This had a demonstrable tendency to produce asset price inflation, which we have also seen globally over the years.
Whenever those flows reverse, emerging markets generally tank.
Perhaps the Fed has not been exporting inflation directly, but the USA certainly has. Trillions of dollars have left the country due to our staggering trade deficits. When they're not here, they don't contribute to inflation here.
There are many problems with trade deficits, although I'm not sure a monetary basis for global inflation is among them.
To the extent that dollars are used to purchase consumer goods and services, either here or abroad, by the monetarist equation (MV=PQ), the more dollars there are at a given quantity of goods and services the higher the price.
However, for countries like the UK, Germany, and China, any flow of dollars as a result of trade deficits would produce not inflation but currency appreciation of the local currency, as those dollars would have to be converted into pounds, euros, or yuan before being spent.
What is true is that, prior to the pandemic and the collapse of money velocity in the United States, much of the "excess" money created wound up not in US asset and financial markets but in emerging economies and developing nations. This had a demonstrable tendency to produce asset price inflation, which we have also seen globally over the years.
Whenever those flows reverse, emerging markets generally tank.