Shift In U.S. Fiscal Policy Could Affect Developing Country Debt, ‘Set Back Economic Progress’
Center for Global Development’s “U.S. Development Policy”: Is the New Budget Deal Good for Foreign Aid? Maybe. Is it Good for Developing Countries? Probably Not.
Scott Morris, senior fellow and director of the U.S. Development Policy Initiative at CGD, writes, “Congress and the Trump administration are now pursuing an aggressively expansionary fiscal policy at a time when such an approach seems nearly guaranteed to drive up interest rates. The ripple effects of this directional shift for the developing world will accelerate and exacerbate a trend toward higher costs of borrowing for developing countries and more limited access to capital markets” (2/9).