You see, interest rates are one of the main tools governments and central banks use to control inflation and stabilize the economy. When interest rates rise, borrowing becomes more expensive. This affects individuals which reduces spending overall. When spending drops, demand for goods and services falls, and that helps slow down inflation.

So my friend, it shows that the knock-on effect on developing countries is significant. Many of them depend on foreign investment and loans, often in stronger currencies like the US dollar. When first world countries raise interest rates, investors pull money out of developing economies and move it to safer, higher return markets. This can weaken developing countries currencies, increase their debt burden, and drive up inflation locally, especially for imported goods like fuel and food.

And yes system is evolving. Just take the last five years as example.
The COVID-19 pandemic disrupted global supply chains, leading to shortages and inflation. Governments responded with massive stimulus spending, which boosted demand but also contributed to rising prices. Then came aggressive interest rate hikes, especially in major economies, to control that inflation. At the same time, digital transformation accelerated remote work, e-commerce, and digital payments became central, not optional.

Don't misquote, the system is likely to evolve also in a few key ways like:

More regional trade blocs instead of full global dependence.

Greater use of digital currencies and financial technology.

Stronger focus on energy transition and sustainability.

Continued tension between growth and inflation control.

So when I say the system is evolving, I mean it is moving from a highly globalized, efficiency driven model to one that is more cautious, technology driven, and influenced by geopolitical and environmental realities

Do you understand?