What are some risks that were not mentioned that we should be discussing as well? How do you believe the BRICS nations will respond to the dollar surge? Discuss why emerging markets are affected by a surging dollar and how their economies will cause volatility in the world economy.
What are some risks that were not mentioned that we should be discussing as well? How do you believe the BRICS nations will respond to the dollar surge? Discuss why emerging markets are affected by a surging dollar and how their economies will cause volatility in the world economy.
Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter19: The International Monetary System: Order Or Disorder
Section: Chapter Questions
Problem 8DQ
Related questions
Question
Transcribed Image Text:What are some risks that were not mentioned that we should be discussing as
well?
How do you believe the BRICS nations will respond to the dollar surge?
Discuss why emerging markets are affected by a surging dollar and how their
economies will cause volatility in the world economy.
Transcribed Image Text:Dollar's Resurgence Is a Headache for the Rest of the World
Summary: The 10-year OTR (on-the-run) Treasury is approaching 5%, and oil is
getting close to $100, so why don't we just throw in a surging dollar to make things
interesting? Why not? Oil is going up; you have to buy oil on the dollar so it makes
sense that the dollar goes up as well. Higher interest rates, soaring energy prices,
and now many countries that are seeing their currency depreciate against the
dollar is a perfect recipe for a global recession. If all this was not enough, countries
around the world issued massive amounts of debt after Covid. As their currency
depreciates, it makes those countries' debt service increases because their
currency has less purchasing power. If these countries have less purchasing
power, it also makes it more expensive to import.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Macroeconomics: Principles and Policy (MindTap Co…
Economics
ISBN:
9781305280601
Author:
William J. Baumol, Alan S. Blinder
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Macroeconomics: Principles and Policy (MindTap Co…
Economics
ISBN:
9781305280601
Author:
William J. Baumol, Alan S. Blinder
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning