What is the influence of persistent U.S. balance of payments deficits on world inflation?

Answer 1

Depending upon what economist you talk to you will get a wide range of answers. At the moment this is something that is extremely hard to quantify. Largely because of very cheap imports coming from Asia ( mainly India and China). This is underwriting every western countries inflation rate. In the effect of a large Economic downturn world wide it would be quite catastrophic. Especially when you consider the amount of Asian countries that hold very large reserves of US currency as security ( courtesy of the Asian Economic Crisis).

Answer 2

World inflation? None at all. Inflations and hyperinflations have happened throughout the last century and continue all over the world, without regard to trade patterns, much less to one specific country's trade balance. Now in the specific case of China, an unusually large inflow of dollars has to be managed properly so as to not ignite inflation -- otherwise it could lead to monetary inflation there.