Second, without Fed accommodation, higher oil prices abroad would not have translated into domestic inflation to any significant degree. To see this point, note that oil prices do not directly affect the measure of inflation that I have been using here - the change in the core PCE deflator, which excludes energy prices.
I am sure conference presentations and discussions will provide us all with valuable insights into possible consequences of China’s financial liberalization, both for China itself and for others as well. Given the size of the Chinese economy, other countries should monitor the developments. It is my pleasure to open this conference and welcome you to the Bank of Finland.