Dollar diplomacy is term used to describe the efforts of the United States, particularly under President William Howard Taft, to further its foreign policy aims in Latin America through use of its economic power by guaranteeing loans made to foreign countries.
The term was originally coined by President Taft, who claimed that U.S. operations in Latin America went from "warlike and political" to "peaceful and economic".
The term is also used historically by Latin Americans to show their disapproval of the role that the U.S. government and U.S. corporations have played in using economic, diplomatic and military power to open up foreign markets. Ex. Honduras 1909, Nicaragua 1912