Summary: Multi -country experts criticize the US dollar hegemony to output inflation to Latin America

Xinhua News Agency, Mexico City, September 7th. Summary: Multi -country experts criticize the US dollar hegemony to output inflation to Latin America

Xinhua News Agency reporter Wang Zhongyi Xu Yan

Recently, the inflation of major Latin American economies has continued to rise, the depreciation of the local currency in many countries, the impact of people's livelihood, and the economy facing severe challenges. Many experts in Latin America believe that the radical adjustment of monetary policy in the Federal Reserve Commission is an important reason for the rising inflation and capital outflow in Latin America. The United States' adjustment of monetary policy ignores the interests of other countries, and has brought impact on the US dollar hegemony to the Latin American economic recovery.

Xia Huasheng, an associate professor of international finance of the Vagas Foundation University in Brazil, believes that Brazil has achieved certain results in economic recovery, but the Federal Reserve's eagle policy will force Brazil to maintain high interest rates, which is not conducive to domestic economic development and people's livelihood improvement. The spillover effect of the Fed's interest rate hikes, superimposed on global energy, food crisis, and new crown epidemic, add uncertainty to Brazil's economic development prospects.

Garv Leez Delperal, director of the Department of Economics of the Pan -American University of Mexico, said the influence of the United States in the international financial system and the US dollar hegemony only served its national interests. The formulation of monetary policy in the United States is a typical unilateralist manifestation of the interests of other countries. The continuous interest rate hike of the Fed will adversely affect the development of the Latin American region and the world economic development.

Herch Marchini, a professor of economics at the University of Buenos Aires, Argentina, believes that the Federal Reserve has continued to raise interest rates in China, causing funds for Latin American countries to accelerate to the United States. Argentina faces the dual pressure of domestic inflation and the Federal Reserve's interest rate hikes, and has to further raise interest rates, which is not conducive to the country's economic recovery.

Venezuela Central University professor and economist Villa said that since the beginning of this year, the Federal Reserve ’s interest rate hikes and the US dollar index have seriously disturbed Venezuela's economic recovery. Especially the recent surge in the US dollar exchange rate has led to the depreciation of the local currency. Stable exchange rate. However, the rise in prices has led to a decline in quality of people's lives, rising production and operation costs of enterprises, which will affect the expectations of economic growth this year.

The United Nations Latin America and the Caribbean Economic Council (Latgar Economic Commission) released an economic research report at the end of last month, predicting that the region's economic growth was 2.7%this year, far lower than the growth rate of 6.5%last year. The report pointed out that this year and even the next years, Latin America and Caribbean countries are facing challenges such as slowing economic growth, increasing inflation pressure, insufficient employment positions, and decline in investment. The region is returning to the low growth stage. The market predicts that the economic growth rate of major Latin American economies this year will generally be lower than last year.

Argentine economist Berllo Levinon said that the Fed's effect of reducing domestic inflation through interest rate hikes is not ideal, but its spillover effect has appeared, resulting Essence Levinton believes that the Federal Reserve's current benchmark interest rate is still lower than the domestic inflation rate, and it is likely to further raise interest rates. The economic recovery of the Latin American region will face more severe challenges.

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