Macro Musings with David Beckworth Robin Brooks on the Dollar, Fiscal Dominance, and Geoeconomics
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Aug 25, 2025 
In this engaging conversation, Robin Brooks, a senior fellow at the Brookings Institution and former chief economist at the Institute of International Finance, revisits critical economic themes. He discusses the evolving status of the U.S. dollar amidst recent market fluctuations and fiscal dominance issues stemming from the pandemic. Robin dives into the complexities of the trade war, deglobalization, and how geopolitical tensions influence economic strategies. He also highlights the importance of political will in responding to sanctions against authoritarian regimes.
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Pandemic Trading-Floor Intensity
- Robin recalls learning Zoom and running treasuries/EM work during the pandemic with massive daily charts and analysis.
- He describes the shock of COVID capital outflows and asking staff if their algorithms were broken.
Central Bank Backstops Encourage Bigger Deficits
- Emergency Fed treasury purchases in 2020 created expectations that central banks will backstop fiscal expansions during shocks.
- That dynamic reduces incentives for responsible fiscal policy and risks fiscal dominance later.
Run Real-Time Market Data Systems
- Build fast data infrastructure to monitor global market moves and supply chains daily.
- Use that to spot transshipments and policy-driven price shifts quickly.