The US Federal Reserve is a de facto central bank for the entire world. The dollar is the sort of de facto world money, it's the currency in which many transactions all over the world are denominated. If the Fed raises interest rates, other central banks are compelled to follow if they don't want to see money flow out of their economy and into the United States. And so there's a cumulative tightening cycle, which the US has helped to kick off.
Featuring historian Tim Barker on the state of monetary politics amid the current fight over inflation.
Check out my July 2021 interview with Barker if you want a more expansive primer on inflation thedigradio.com/podcast/inflation-politics-with-tim-barker
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