Much of the world’s economy is based on the dollar and the dollar’s value has dropped. As a result, the price of food is increasing on a global scale. The economic advisors from seven of the largest economic-countries met along with the International Monetary Fund and the World Bank Group.
All members recognized the impact that the falling dollar has had on food, and more important the all agree that price control and subsidies are not the answer because they “tend to create fiscal burdens and distortions.”
Interestingly enough, for the first time in a long time, the G7 is breaking the mold by bringing into action a move to slow the foreign exchange markets, hoping to put a halt to the dollar’s decline.