In recent months, there has been a great deal of discussion in the financial media about how aggressive Fed tightening has pushed up the dollar and poses (at least) two dangerous consequence for the global economy.
First, higher US interest rates and a stronger dollar are creating difficulties for emerging market economies (EMEs), which must buy dollars to repay their dollar debts with cheaper local currencies. And, second, those cheaper currencies, in advanced as well as emerging market
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Tags: Central Banking