The Dig: Inflation Politics with Tim Barker
Jacobin Radio
00:00
The Volcker Shock and the Global South
In the 70s, there'd been a huge spree of lending to third world countries by bankers from the global north. The Volcker shock does is to really raise the cost of dollarized debt. It's a huge increase in interest rates for anyone who owes dollars. And so for these countries across the third world with huge amounts of debt, it creates a problem where just even to meet the interest payments on these debts becomes impossible,. much less to ever pay it back.
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