Petrobras is also used as an inflation control tool by government.
Fund managers interviewed by Forbes over the last two months have all agreed that India was not done tightening, and was behind China and Brazil when it comes to inflation control.
Get inflation under control, and then provided the right supply-side policies are in place employment can flourish.
The Fed has a dual mandate to keep inflation under control and stabilize employment.
QE3 could conceivably make it harder for the big emerging markets like China and Brazil to keep inflation under control.
Today, with inflation under control, a stabilised currency and an economy growing at a healthy rate, the outlook is rosier.
The Bank of England has already increased interest rates four times in the past six months to keep inflation under control.
Such purchases amount to printing money, and aroused fears that the Fed was subordinating inflation-control to helping the government finance its deficits.
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Last year, with inflation under control and exports growing at a 4.2% clip, lending at Bancolombia, the country's biggest bank, grew 30%.
Up until Thursday the ECB has been making itself unpopular with European businesses by sticking to its guns and concentrating on keeping inflation under control.
With inflation under control, central banks are inclined to keep interest rates low and thereby unwittingly accommodate an unsustainable boom in credit and asset prices.
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But more important for Ms Rousseff's overall popularity will be keeping inflation under control and ensuring that a necessary cooling of the economy does not descend into stagnation.
Now, with massive stimulus in the past, inflation under control, and real estate no longer rising in the double digits, China looks like it has neared its bottom.
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For that reason, anybody who is thinking of retirement should consider holding off on those plans until a new Fed Chairman appointed by Romney gets inflation under control.
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The central bank has been cautious on cutting interest rates fearing a premature easing could waste its efforts over the past three years to bring inflation under control.
The bill for payroll and pensions has risen far faster than inflation in recent years, with the task of keeping inflation under control left entirely to monetary policy.
In return for the bailout, Bangkok must meet certain stringent conditions -- such as reducing the current-account deficit and keeping inflation under control -- through a tough austerity program.
With inflation under control, the Central Bank was able to slash six zeros off the currency so that it no longer cost a million liras to buy a loaf of bread.
When Mark Carney, the new governor of the Bank of England, takes over from Sir Mervyn King in July, he will face the difficult task of keeping inflation under control while also stimulating the faltering UK economy.
Input cost inflation fell to its lowest level in two-and-a-half years, while output price increases moderated to their slowest pace since Q3 2010, bringing a much needed break from relentless inflation. (Read Mantega: Inflation Under Control In Brazil).
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The ECB last raised its key rate to 3.75% in March and Trichet's comments after the Bank's last meeting in May that "strong vigilance" was needed to keep inflation under control, were taken as a signal that rates would go up this month.
After bringing inflation under control during the Carter years with monetary tightening, Paul Volcker (appointed by President Carter and re-appointed by President Reagan) had plenty of room to reverse course, cutting short-term interest rates from around 20 percent in 1982 to around 6 percent in 1988!
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On Tuesday, Central Bank President Alexandre Tombini said the bank and the government have done enough to bring inflation under control by 2012, to around 4.6%, and that by the second quarter we should start seeing monthly infation coming in on target which is officially between 0.37% and 0.4%.
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That is one reason why academics and policy makers thought central bank efforts to cut inflation would stimulate growth, and a failure to control inflation would always hurt it.
These rate hikes came amid increasing pressure on the Chinese government to control inflation.
Instead of seeking to control inflation indirectly, central banks aim expressly at price stability.
But Mr Davies does not think higher taxes are the way to control inflation.
Current measures to control inflation are too mild and thus may actually fan the fires of inflation.
The problem is that Beijing, to control inflation, is in fact putting the brakes on the money supply.
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Bulliard said that keeping inflation and inflation expectations under control is "rule No. 1" for a central bank.
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