The baby formula crisis that is threatening the lives of infants across the U.S. deepened this week as the out-of-stock rate for baby formula on store shelves surged to 70 percent for the week ending May 22. The shortage rate during the previous week was 45 percent, according to the retail tracking firm Datasembly.
To me, the Lebanese crisis looks like, in the first instance, as a foreign exchange and international transactions crisis, a classic developing country crisis in the era of financialisation. As such it is closely connected to the country’s policy on the exchange rate. The fixed peg policy chosen by the Lebanese ruling class and operated by the central bank and the government for a long time, has proven destructive. The country’s economy is under great pressure because the strong pound has damaged Lebanese competitiveness on an international scale and facilitated the growth of domestic credit.