Historical Events and Implications for U.S. Economic Stability

This chapter explores historical events from the early 1970s, including concerns about the U.S. fiscal and external positions, inflation control under Paul Volcker and Alan Greenspan, and the U.S. dollar's status as the world's reserve currency. It discusses the impact of domestic policies on global stability, the weaponization of the dollar for sanctions enforcement, and the increasing trend of central banks purchasing gold as sanction-free reserves. The chapter also highlights the importance of managing inflation and learning from past mistakes to prevent future financial crises.