Commodity prices have risen significantly in terms of all major currencies, suggesting that changes in the foreign exchange value of the dollar are unlikely to have been an important driver of the increases seen in recent months.
I will note that, while the support provided to banks by public safety nets appears to be an element of stability in the new system, it has also been part of the process that engendered recent crises. Next, I will consider why, if the existence of safety nets can encourage crises, we continue to provide them.