Will The Dollar’s Rise Crush Central Banks’ Plans?
Forward Guidance
00:00
The Rise of the Dollar in the Emerging Markets
A strong dollar is a huge problem for the world and that again has to do with how the financial system is structured. In many countries emerging markets in particular their companies borrow a lot of dollars. A stronger dollar impacts the balance sheets of foreign banks which makes them less likely to create more credit. And if they can't create more credit then that hurts economic conditions.
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