Inflation

The US central bank can control inflation by adjusting interest rates but not all countries can do that. Because the US has a consumer driven economy raising interest rates causes less consumption because prices are higher. Witness the slow down in housing where the monthly principal and interest payment is now twice what it was three years ago on the same house. Other countries whose economies are not consumer based cannot do this so money from around the world is flowing into the US to capitalize on the higher interest rates. This is promoting a strong dollar which means cheaper prices on imports and better bargains for overseas travelers. From the standpoint of other countries it means capital flight and as money leaves those countries, there is less to invest at home.