US Dollar Appreciation Linked to Global Output Decline, Study Finds.
The US dollar plays a big role in global trade and finance. When the dollar goes up in value, it can affect other countries in different ways. For example, it can make it harder for countries to pay back debts in dollars, which can slow down their economies. Surprisingly, when the US dollar gets stronger, it actually leads to lower economic growth in other countries, not the boost you might expect. This effect is seen in both advanced and emerging market economies.