Dollar Diplomacy

Dollar diplomacy is the effort of the United States—particularly under President William Howard Taft—to further its aims in Latin America and East Asia through use of its economic power by guaranteeing loans made to foreign countries. Taft’s Dollar Diplomacy not only allowed the United States to gain financially from countries, but also resisted other foreign countries from reaping any sort of financial gain. Consequently, when the United States benefited from other countries, other world powers could not reap those same benefits. Overall the "Dollar Diplomacy" was to encourage and protect trade within Latin America and Asia.