Long-term "infrastructure bonds", denominated in inflation-adjusted pesos, have financed much of the $8 billion investment in roads, airports and the like.Getting paid, another Latin American headache, is relatively easy in Chile.
All figures are denominated in current (inflation-adjusted) United States dollars.
And 80percentt of Icelandic homes have mortgages with payments either directly linked to inflation or denominated in foreign currencies.
"It is not obviously true that we are going to see retail inflation in goods denominated in dollars".
In 1999 the maximum term of government bonds was one year; most were denominated in dollars or linked to inflation.
More than a third of his $36 billion in assets under management, including most of his personal investments, are denominated in gold-linked shares, an inflation hedge, which were up 30%-plus.
On the other side of the equation, the decline in the American currency is helping push up commodity prices, most of which are denominated in dollars, and kindling fears that inflation could rise.
The exchange rate was usually fixed to help maintain low levels of inflation and high stability of import prices (denominated in local currency).
In addition, because of their ability to create money, governments can always repay debt denominated in their own currency, albeit at the risk of inflation.
