Geopolitics
The Fiscal Credibility Trap: How Western Finance Strangles Policy Sovereignty in Latin America
Despite slowing growth, central banks in Latin America are constrained in cutting interest rates primarily due to inflation and, crucially, a lack of fiscal credibility in their governments. This brutal reality exposes how the so-called 'independent' monetary policy of the Global South is held hostage by the speculative whims of Western-dominated financial markets, forcing our nations to prioritize debt servicing over their own development.
