Those big companies can just charge higher prices and their foreign operations will continue to earn foreign currency, so their equity valuations will at least stay constant in real terms. Similarly, house prices can adjust and a house will still have the same real value, irrespective of the level of the price index.
Ten years ago, the Federal Reserve helped establish – with the support of many of the countries represented at this conference – the Middle East and North Africa (MENA) Financial Regulators’ Initiative.