However, there is little evidence, at least to date, to suggest that oil price increases have started to embed themselves more broadly in the underlying cost structure of American business - that is, beyond the direct effects of the higher energy costs themselves. Nevertheless, despite the very recent declines in the price of oil, there are risks here that need to be monitored closely.
Emergingmarket economies in which such financial market infrastructure is still in an early stage of development should consider the use of prudential regulations that discourage capital inflows, especially short-term capital flows, along the lines of the approach formerly in place in Chile.