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Why a Strong Dollar Causes Most of the World Major Pain

The vast majority of global trade is still denominated in U.S. dollars, making cross-border flows a lot about currencies.

Why a Strong Dollar Causes Most of the World Major Pain
An employee uses a machine to count U.S. one-hundred dollar banknotes (Photographer: Paul Yeung/Bloomberg)  

Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance and economics.

The vast majority of global trade is still denominated in U.S. dollars, making cross-border flows about currencies as much as manufactured goods. On this week's episode of the Odd Lots podcast, we speak to Hyun Song Shin, economic adviser and head of research at the Bank for International Settlements. He talks about why a weaker dollar amounts to looser financial conditions for much of the world. He also gives his outlook on the global economy and the state of credit markets.

To contact the editor responsible for this story: Laura Carlson at lcarlson21@bloomberg.net

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