Dr. Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at University of California, Berkeley, joins Forward Guidance alongside Joseph Wang, CIO of Monetary Macro and writer at FedGuy.com, to discuss his paper at the Federal Reserve’s 2023 Jackson Hole symposium, “Living with High Public Debt.” Professor Eichengreen also shares his findings on the U.S. dollar’s role as a global reserve currency (“dollar dominance”), financial repression, and central bank digital currencies (CBDCs), and he also shares his views on Modern Monetary Theory (MMT). Filmed on November 28, 2023.

Dr. Eichengreen’s 2023 Jackson Hole paper, “Living With High Public Debt”: https://www.kansascityfed.org/Jackson%20Hole/documents/9749/Living_With_High_Public_SA_Sep_2_2023.pdf

Complete agenda for 2023 Jackson Hole Symposium: https://www.kansascityfed.org/research/jackson-hole-economic-symposium/jackson-hole-economic-policy-symposium-structural-shifts-in-the-global-economy/

More information on Dr. Eichengreen’s work: https://eml.berkeley.edu/~eichengr/

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Timestamps:

(00:00) Introduction

(01:33) High Levels of Debt Relative to GDP Are Problematic

(06:07) Ways By Which Debt-to-GDP Ratios Can Be Lowered

(14:08) Will Artificial Intelligence (AI) Lead To A Productivity Miracle?

(19:58) How Bad Does It Have To Get Before A Global Reserve Currency Gets Dethroned?

(26:31) Central Banks Are Buying More Gold

(30:31) What Could Erode Dollar's Dominant Position In The World

(40:39) Dr. Eichengreen's Views On Modern Monetary Theory (MMT)

(46:05) Is Central Bank Independence Something That's Here To Stay?

(49:16) Central Bank Digital Currencies (CBDCs)

(59:49) Dr. Eichengreen's Future Work On China's Economic Slowdown

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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.