Monetary Matters with Jack Farley Ken Rogoff on Past, Present, and Future of U.S. Dollar Hegemony
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May 12, 2025 
Ken Rogoff, a renowned economist and Harvard professor, dives deep into the U.S. Dollar's journey to global dominance in his insightful chat. He critiques past tariff policies, suggesting Trump may be seen differently in a decade. Rogoff discusses the trade deficits and the U.S.-China relationship, highlighting the complexities behind the dollar's reserve status. He also examines potential future shifts in economic power and currency dynamics, raising thought-provoking questions about the global financial landscape.
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Greenspan's Underestimated Warning
- Alan Greenspan dismissed the U.S. current account deficit as no problem during a conference.
- Ken Rogoff immediately disagreed, warning that rapid changes in capital flows warrant caution.
Automation Over Globalization
- Manufacturing job losses are driven more by automation than globalization.
- U.S. manufacturing output has actually increased as a share of GDP despite job losses.
Fiscal Deficits Drive Trade Deficits
- U.S. trade deficits correspond with foreign savings recycling dollars back as investments.
- Closing the government budget deficit is more effective at reducing trade deficits than tariffs.
