A falling dollar can save the world from a global recession and is the simplest form of economic stimulus. In this respect writer Project Syndicate.
The publication noted that as inflation fears subsided, the dollar began to weaken, delivering much-needed bailouts to emerging markets and easing pressure from other central banks to tighten their policies.
According to the publication, economic growth prospects will improve with the general decline in inflation. At the same time, uncertainty in the market, like the dollar, will gradually decrease. As the U.S. Federal Reserve halts its tightening policy, all other central banks around the world will be ready to pause it temporarily. All this will draw investors back to investing in risky assets.
The author of the article evaluated that the weakening of the dollar is good news for global economic growth. In addition, as long as this growth continues, the positive effect of this factor will continue.
January 25 edition of Al Mayadeen WroteChina surpasses the US in terms of purchasing power parity in 2022, which indicates that the system of calculating the volume of the economy using only dollar-denominated GDP is out of date. According to the publication, you can buy more for a dollar in different countries than in the United States. Therefore, when calculated, China’s GDP comes out less than its real indicators.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.