Labour has got the message – poorer nations suffer most from bond market turmoil | Heather Stewart
Source: The Guardian ·
Just as Brown and Blair did in 2005, Andy Burnham aims to champion debt relief to help developing countriesDeveloping nations face triple shock, UN warnsFrom Washington to Paris, London to Tokyo, policymakers in every large economy have been counting the costs of bond market turmoil in recent weeks.But the brunt of the pain is being borne by heavily indebted developing countries, that have…
From the source
From Washington to Paris, London to Tokyo, policymakers in every large economy have been counting the costs of bond market turmoil in recent weeks. But the brunt of the pain is being borne by heavily indebted developing countries, that have little hope of influencing the whims of global investors, but pay the price regardless. Markets have responded to the war in the Middle East, and a spendthrift White House, by dumping government bonds – driving up borrowing costs just about everywhere. Finance ministers and central bankers gathering in Bangkok this week for the annual meetings of the International Monetary Fund and World Bank may be loathe to point the finger at Donald Trump’s regime; but all are at least in part hostage to the US president’s war plans. That has made what was already a perilous situation even worse – just as the world is battling an energy crisis; and as developing countries urgently need to invest in adapting to the climate emergency. Even before the latest…