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Rate hikes may have slowed inflation in the US – but they have also heightened the risk of financial crises for lower-income nations

  • Written by: Cristina Bodea, Professor of Political Science, Michigan State University
Rate hikes may have slowed inflation in the US – but they have also heightened the risk of financial crises for lower-income nationsSri Lanka is among the countries facing the risk of debt distress.Ishara S. Kodikara/AFP via Getty Images

The campaign to fight U.S. inflation by upping interest rates has been going on for a year and a half – and its impacts are being felt around the world.

On July 26, 2023, the Federal Reserve announced another quarter-point hike. That means...

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