How the strong U.S. dollar is rippling through the world economy – By Neil Irwin (Axios) / April 18, 2024
With the world’s finance ministers gathered in Washington this week, one topic is coming up over and over: A surge in the value of the U.S. dollar against most other major currencies is making life complicated for economic policymakers around the world.
Why it matters: The flip side of the stronger dollar is weakening in other major currencies, which tends to fuel inflation in countries that have already been struggling to bring price pressures down.
- It also makes dollar-denominated debts overseas — especially common in emerging markets — more onerous, essentially throttling economic activity.
- It creates hard questions in some countries about whether to intervene to prop up their currency in hopes of arresting capital outflows, as Indonesia did this week.
CONTINUE > https://www.axios.com/2024/04/18/usd-world-economy
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