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Is global inflation linked to the depreciation of the dollar? How? Consider Bahrain which depends on imported goods and services from the rest of the

Is global inflation linked to the depreciation of the dollar? How?

Consider Bahrain which depends on imported goods and services from the rest of the world. How does the appreciation of the dollar affect both prices and production in Bahrain?

What happens to the country international reserves because of the dollar appreciation? Why do countries keep international reserves? Explain.

What do you suggest that monetary policy should do to respond to the appreciation of the dollar?

What impact the appreciation of the dollar will have on the US economy?

Is global inflation linked to the depreciation of the dollar? How?

What happens to the country international reserves because of the dollar appreciation? Why do countries keep international reserves? Explain.

What do you suggest that monetary policy should do to respond to the appreciation of the dollar?

What impact the appreciation of the dollar will have on the US economy?

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