dollar diplomacy

Disparaging description of US foreign policy in the early 20th century. The USA sought political influence over foreign governments (China 1909 and 1912; Haiti 1910; Nicaragua and Honduras 1911; Dominican Republic 1916) by encouraging American financiers to make loans to countries whose indebtedness could then be used to promote US interests.

Dollar diplomacy sometimes resulted in US military intervention (such as marines in Nicaragua 1912–25) to prop up client regimes. The term is particularly associated with the presidency of William Taft. In the latter 20th century similar policies are usually described as economic imperialism.