

Bond Vigilantes, Game Theory, And Why The US Shouldn’t Go It Alone - Ep209: Mohamed El-Erian
9 snips May 21, 2025
Mohamed El-Erian, a world-renowned economist and former advisor to President Obama, shares his insights on the intertwined realms of global finance, politics, and climate change. He discusses how bond markets might be evolving into a new form of governance and the implications of shifting U.S. economic leadership. El-Erian highlights the importance of international cooperation in combatting climate change and critiques the U.S. response to global trade dynamics, particularly in light of China's ascendant green technology sector.
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Economics' Triple Failure
- Economics has failed by ignoring distributional effects, environmental health, and sustainable growth.
- Politics now drives economies, disrupting traditional assumptions and governance.
Bond Vigilantes as Global Check
- Bond markets act as a global governance check on governments through bond vigilantes.
- Their influence resurges when central banks pull back, disciplining fiscal irresponsibility.
Central Banks' Quiet Coordination
- Central banks meet discreetly at the BIS to coordinate monetary policy.
- Use these partnerships to manage global financial stability effectively.