Poorer countries copied America’s money-printing spree—and are paying the price

Quartz/Roya Wolverson/2-10-2021

“The Federal Reserve and other powerful central banks have viewed a curiously long bout of low inflation as proof that stimulating the economy through unconventional money-printing measures can ease the pain of downturns. Those tactics traditionally were considered off-limits to less developed economies with unstable politics and weaker currencies.”

USAGOLD note:  The quantitative easing pandemic started in the United States then spread to emerging countries. Now the inflation genie is out of the bottle in many of these countries and foreign investors are becoming skittish about buying their currencies and financing their debts. Will the result be the same in the United States? A good many, too many in fact, say the answer to that question is “yes.” This morning we will concentrate on the inflation question.