How it plays out - Small nations are not being able to buy fuel or food. The natives get upset and kick the management out. The management usually doesn't want to go, and so another round of mayhem begins. This is already playing out in some countries, while many others are still trying to renegotiate their debt.
Global supply disruptions and labor-market pressures are feeding supply side inflation. Trying to reduce inflation by raising interest rates, along with financial market stress, is having consequences (see Sri Lanka etc) .
Instead of focusing on reducing consumption, policymakers should be figuring out how to boost production. Improving productivity and capital allocation are critical for poverty reduction.
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