What are the
differences in the principles behind moral diplomacy
and dollar diplomacy?

Wilson's moral diplomacy replaced the dollar diplomacy of William Howard Taft, which highlighted the importance of economic support to improve bilateral ties between two nations. Taft's dollar diplomacy was based on economic support, while Wilson's moral diplomacy was based on economic power.

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Explanation:

Wilson's moral diplomacy replaced the dollar diplomacy of William Howard Taft, which highlighted the importance of economic support to improve bilateral ties between two nations. Taft's dollar diplomacy was based on economic support, while Wilson's moral diplomacy was based on economic power.

when a country suffers, for example, a drought period, the market product is affected for a low offer, in this case, potatoes; the government has to tax to the households, which have to give more money for the potatoes which they consume, that situation make them consume substitute goods even through loans, it could increase the financial market movement and the inflationary phenomena, the business has to increase salaries in order to the employees could buy a more expensive food (potatoes) and in order to inflation tha business had to buy expensive supplies in the factor market, while the rest of the world have to gain more money to consume the same amount of potatoes.