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Monetary policy: effects on the Global South with Pablo Bortz

Crash Course Economics

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The Dollar Dominance in Global Financial Markets

This chapter explores the significance of the dollar in global financial markets, particularly in trade and credit transactions, and the challenges faced by developing countries in the Global South due to their reliance on the dollar. It discusses the risks associated with borrowing in dollars instead of domestic currency, as well as the impact of US and EU monetary policies on access to funding, borrowing terms, and exchange rates in developing nations. The chapter also delves into the implications of quantitative easing policies and the potential effects of tightening monetary policy on emerging economies.

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