-6lower the dollar price of U.S. imports, although empirically, this effect is less than onefor-one, as foreign exporters tend to keep the dollar prices of their goods comparatively stable relative to observed exchange rate fluctuations. 5 In addition, swings in global commodity prices influence U.S. inflation.
Over the past year, the rise in the dollar and falling oil prices have been important contributors to the subdued pace of U.S. inflation. Japan in the Global Economy Up to now, I have focused on the U.S. economy.