Published on December 20, 2024, this VoxEU column by Pierre Yared examines the relationship between U.S. military power and the global dominance of the U.S. dollar. Drawing on research with Carolin Pflueger, Yared argues that America’s financial advantages—often referred to as its “exorbitant privilege”—are closely tied to its military strength, which reassures investors and allows the U.S. government to borrow at lower interest rates than other nations. He points to historical examples, including the rise of the United States after World War I and the United Kingdom after the Napoleonic Wars, to show how financial leadership often follows military supremacy. Yared also notes that geopolitical crises tend to strengthen demand for U.S. assets, reinforcing America’s borrowing advantage. While the current system benefits the United States economically and strategically, he warns that fiscal instability, debt-ceiling crises, or the internationalization of China’s currency could weaken both U.S. financial and geopolitical dominance. Source: CEPR.
To host Pierre Yared at your speaking engagement, contact WWSG.
Loretta Mester: Fed most likely to cut rates by quarter point
Former Cleveland Fed president Loretta Mester joins CNBC’s ‘The Exchange’ to discuss her expectations for rate cuts, whether the Fed’s focus should be on rates…
Thought Leader: Loretta Mester
Kevin O’Leary: Kamala Harris’ ideas for US economy
Canadian businessman and investor Kevin O’Leary has slammed Kamala Harris’ “crazy” ideas for the US economy. Speaking with Fox News on Monday, the Shark Tank…
Thought Leader: Kevin O’Leary
Sara Fischer: International Fund for Public Interest Media looks to raise $150M
This piece is by WWSG exclusive thought leader, Sara Fischer. An international fund that supports independent media on Wednesday unveiled an ambitious plan to raise…
Thought Leader: Sara Fischer
Pierre Yared on the Changing Forces Behind Inflation
Thought Leader: Pierre Yared
Sara Fischer: Media Leaders Sound the Alarm on AI
Thought Leader: Sara Fischer
