the economic outlook in the United States, however cloudy, is still better than in most other regions.

loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.

A fragile currency can sometimes work as “a buffering mechanism,” causing nations to import less and export more, Mr. Prasad said. But today, many “are not seeing the benefits of stronger growth.”

Still, they must pay more for essential imports like oil, wheat or pharmaceuticals as well as for loan bills due from billion-dollar debts.

debt crisis in Latin America in the 1980s.

The situation is particularly fraught because so many countries ran up above-average debts to deal with the fallout from the pandemic. And now they are facing renewed pressure to offer public support as food and energy prices soar.

Indonesia this month, thousands of protesters, angry over a 30 percent price increase on subsidized fuel, clashed with the police. In Tunisia, a shortage of subsidized food items like sugar, coffee, flour and eggs has shuttered cafes and emptied market shelves.

New research on the impact of a strong dollar on emerging nations found that it drags down economic progress across the board.

“You can see these very pronounced negative effects of a stronger dollar,” said Maurice Obstfeld, an economics professor at the University of California, Berkeley, and an author of the study.

central banks feel pressure to raise interest rates to bolster their currencies and prevent import prices from skyrocketing. Last week, Argentina, the Philippines, Brazil, Indonesia, South Africa, the United Arab Emirates, Sweden, Switzerland, Saudi Arabia, Britain and Norway raised interest rates.

World Bank warned this month that simultaneous interest rate increases are pushing the world toward a recession and developing nations toward a string of financial crises that would inflict “lasting harm.”

Clearly, the Fed’s mandate is to look after the American economy, but some economists and foreign policymakers argue it should pay more attention to the fallout its decisions have on the rest of the world.

In 1998, Alan Greenspan, a five-term Fed chair, argued that “it is just not credible that the United States can remain an oasis of prosperity unaffected by a world that is experiencing greatly increased stress.”

The United States is now facing a slowing economy, but the essential dilemma is the same.

“Central banks have purely domestic mandates,” said Mr. Obstfeld, the U.C. Berkeley economist, but financial and trade globalization have made economies more interdependent than they have ever been and so closer cooperation is needed. “I don’t think central banks can have the luxury of not thinking about what’s happening abroad.”

Flávia Milhorance contributed reporting from Rio de Janeiro.

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U.S. Senator Urges Kenyan President To Aid Peaceful Transition

By Associated Press
August 18, 2022

Sen. Chris Coons went to Kenya amid chaos after William Ruto was declared the country’s new president.

A visiting U.S. senator says he has encouraged Kenya’s outgoing president to participate in a “peaceful transition of power” amid the latest election crisis in East Africa’s most stable democracy.

“I’ll let the president speak for himself, but that was certainly a hope I expressed today,” Sen. Chris Coons told The Associated Press after his meeting with President Uhuru Kenyatta on Thursday. He said they discussed ways in which Kenyatta can play a “constructive peacemaking role” after leaving office.

Kenyatta has remained publicly silent since the Aug. 9 vote, adding to the anxiety as Kenya again faces post-election uncertainty and a likely court challenge by the losing candidate, Raila Odinga. Coons, leading a congressional delegation on a five-country Africa visit, was in Kenya in part to meet the key parties and urge that calm continue.

Kenyatta had backed longtime rival and opposition leader Odinga in the close race against his own deputy president, William Ruto, who fell out bitterly with Kenyatta years ago. Ruto on Monday was declared the winner, but not before Kenya’s most peaceful election ever slid into chaos in the final moments.

The electoral commission split in two, each side accusing the other of trying to tinker with the results. It came as a shock to many Kenyans after an election widely seen as the country’s most transparent ever, with results from the more than 46,000 polling stations posted online.

Now Odinga almost certainly will challenge the results in Supreme Court. His campaign has seven days from Monday’s declaration to do so, and the court will have 14 days to rule. Odinga has urged supporters to remain patient instead of taking to the streets in a country with a history of sometimes deadly post-election violence.

After meeting with Kenyatta, Odinga and Ruto, Coons told the AP “I was encouraged that in all three meetings we heard a commitment to a call for calm and tranquility, to respect the legal processes established in the 2010 constitution.” He said the conversations were about the rule of law, the importance of free and fair elections and peaceful transitions.

“Obviously, the United States has had a very difficult experience with these issues for the past few years,” Coons said, referring to the Jan. 6, 2021, attack on the U.S. Capitol as former President Donald Trump tried to remain in power. “I said in all three meetings we have things to learn from Kenya.”

Kenyatta told Coons that Kenya would uphold “its position of a shining example of democracy in the continent by maintaining peace during this transition period,” according to a statement issued by the president’s office.

Coons said he did not come to Kenya seeking anything like the handshake that Kenyatta and Odinga, after prodding, famously shared to end months of crisis after the 2017 election, whose results were overturned by the Supreme Court over irregularities, a first in Africa. Odinga boycotted the fresh vote and declared himself the “people’s president,” bringing allegations of treason.

This time, with Kenyatta’s backing, the Odinga campaign felt he would win the presidency after a quarter-century of pursuing it.

Kenyatta is stepping down after two terms, itself a notable act in a region where longtime presidents like Yoweri Museveni of Uganda and Paul Kagame of Rwanda have been accused of clinging to power through changes in term limits, manipulation of elections and crackdowns on dissenting voices.

The U.S. delegation is also visiting Rwanda, where human rights and violent tensions with neighboring Congo are almost certainly on the agenda following Secretary of State Antony Blinken’s visit there last week. Coons said he looks forward to visiting again with Kagame.

Kenyatta has played a leading role in efforts to calm the Rwanda-Congo tensions and in trying to mediate in neighboring Ethiopia’s deadly Tigray conflict, with support from the U.S. Coons did not say what kind of peacemaking role he hoped to see Kenyatta play after stepping down.

Ruto’s public comments this week have been on domestic matters, not foreign, but Coons said the president-elect made an “expression of concern and intent in trying to help lead to positive resolutions” in such regional crises.

Coons also has played a role in trying to calm the Ethiopia conflict. But he told the AP the delegation was not having a meeting with Ethiopia’s government or the Tigray forces while in Kenya.

Coons, a member of the Senate Committee on Foreign Relations, and his delegation have already visited Cape Verde and Mozambique and will visit Tunisia as well.

Additional reporting by The Associated Press.

: newsy.com

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Giorgio Armani, Others Flee Wildfire On Sicilian Island Retreat

By Associated Press
August 18, 2022

Local officials appealed for any information that would help identify the cause of the blaze, which started in two points a quarter-mile apart.

Fashion designer Giorgio Armani and dozens of others were forced to flee from their vacation villas overnight as firefighters worked to extinguish the remnants of two wildfires on the Sicilian island of Pantelleria on Thursday.

A photo shows flames that appear to encroach on Armani’s villa, but his press office said they stopped short of the property. Armani and guests evacuated to a boat in the harbor overnight.

The head of the region’s civil protection agency, Salvatore Cocina, said arson is suspected in two wildfires that forced around 30 people to seek refuge in boats or on safer parts of the island. Firefighters used Canadair planes to douse the flames, along with ground teams to protect homes. Authorities said no structures appeared to have been lost.

The island’s mayor, Vincenzo Campo, told the ANSA news agency two Canadairs were working on putting out the last flames on difficult terrain and that the wind had dropped off.

“After the great fear of last evening and the night spent at work, Pantelleria is returning to normal,” Campo said. “It seems the worst is over.”

Local officials appealed for any information that would help identify the cause of the blaze, which started in two points a quarter-mile apart.

Pantelleria, located between Sicily and the Tunisia, is a popular beach and trekking destination that includes ancient archaeological sites and natural geographic formations.

Additional reporting by The Associated Press.

: newsy.com

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Moderna, Racing for Profits, Keeps Covid Vaccine Out of Reach of Poor

Moderna’s market value has nearly tripled this year to more than $120 billion. Two of its founders, as well as an early investor, this month made Forbes magazine’s list of the 400 richest people in the United States.

As the coronavirus spread in early 2020, Moderna raced to design its vaccine — which uses a new technology known as messenger RNA — and to plan a safety study. To manufacture the doses for that trial, the company received $900,000 from the nonprofit Coalition for Epidemic Preparedness Innovations.

The nonprofit group said Moderna had agreed to its “equitable access principles.” That meant, according to the coalition, that the vaccine would be “first available to populations when and where they are needed and at prices that are affordable to the populations at risk, especially low- and middle-income countries or to public sector entities that procure on their behalf.”

Moderna agreed in May to provide up to 34 million vaccine doses this year, plus up to 466 million doses in 2022, to Covax, the struggling United Nations-backed program to vaccinate the world’s poor. The company has not yet shipped any of those doses, according to a Covax spokesman, although Covax has distributed tens of millions of Moderna doses donated by the United States.

Mr. Bancel said that many more doses would have gone to Covax this year had the two parties reached a supply deal in 2020. Aurélia Nguyen, a Covax official, denied that, saying, “It became clear early on that the best we could expect was minimal doses in 2021.”

Late last year, the Tunisian government was hoping to order Moderna doses. Dr. Hechmi Louzir, who led Tunisia’s vaccine procurement efforts, didn’t know how to contact Moderna to begin talks and asked the U.S. Embassy in Tunisia for help, he said. Officials there contacted Moderna, he said, but nothing came of it.

“We were very interested in Moderna,” Dr. Louzir said. “We tried.”

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