Xinhua News Agency, Singapore, October 30 Exclusive interview: US economic policies are dragging down the global economy – Interview with Yan Li, an economic expert at Nanyang Technological University in Singapore
Xinhua News Agency reporter Liu Chuntao Cai Shuya
Yan Li, a senior lecturer at the Nanyang Business School of Nanyang Technological University in Singapore, said in a recent interview with Xinhua News Agency that the policy spillover effects of the U.S. government’s massive borrowing and the Federal Reserve’s aggressive interest rate hikes this round are dragging down the global economy.
He said that the combination of U.S. monetary policy with the Ukraine crisis and the Palestinian-Israeli conflict has led to high inflation in most of the world’s major economies, soaring commodity prices, impacts on global food supplies, and significant impacts on the economic development of many countries.
For some countries with relatively lagging development, high commodity prices, especially grain prices, have caused food supply shortages and severely reduced the purchasing power of currency. Food crises have occurred in some countries, which have seriously affected the national economy and people’s livelihood and economic and social development, and the humanitarian crisis has intensified. Among emerging market economies, traditional major grain-producing countries such as Brazil have also experienced tight grain supplies and high prices, which have affected economic and social development.
Yan Li also said that due to the impact of U.S. economic policies, many developing countries and emerging market economies have experienced high prices for energy, raw materials and other major means of production, and manufacturing and exports have encountered unprecedented difficulties. Many countries have to issue US dollar bonds to maintain the import of important means of production and daily necessities. The new dollar debt brings higher risks to the relatively fragile financial systems of these countries.
Developed economies such as the European Union have also been impacted by U.S. economic policies. Imported inflation and rising prices of important factors of production and living have led to the collapse of a large number of small and medium-sized enterprises, high unemployment rates, and a significant increase in people’s living costs. In addition, housing mortgage loan interest rates in Europe and the United States have risen, putting great pressure on people’s lives. Public dissatisfaction has caused social divisions, political instability, and the rise of populism.
Yan Li said that if the United States continues to adopt irresponsible fiscal and monetary policies in the future, it will have continued negative spillover effects on the global economy. This is not so much a “drag” as a “plunder.”
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责编：丛芳瑶 ]
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2023-10-30 12:13:00
