Is the Dollar’s Era of Exorbitant Privilege Ending?
Bloomberg reports that the Trump administration wants a less globalized economy and a still-preeminent dollar. Getting both won’t be easy.
The dollar’s global standing is a mixed blessing. Its status as a safe haven and dominant reserve currency lowers the US cost of borrowing — the so-called “exorbitant privilege” — which means more investment, more growth and higher incomes in the aggregate. But the dollar’s strength also leans against the economy’s competitiveness in international trade, which puts some of its... ...
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