12min chapter

Macro Musings with David Beckworth cover image

Josh Lipsky on Financial Statecraft, Cross-border Payments, and the Global Status of the Dollar

Macro Musings with David Beckworth

CHAPTER

The Evolution of Financial Statecraft in Geopolitical Conflicts

This chapter discusses the shift towards heavy reliance on financial sanctions and economic statecraft in response to conflicts like the Russia-Ukraine situation and a crisis in the Taiwan Strait involving China. It analyzes the challenges related to enforcing sanctions on China, the interconnected nature of economies, and the importance of understanding the implications of imposing sanctions on China for the global financial system, especially in relation to the status of the dollar.

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