The U.S. dollar is a refuge at times of uncertainty – and in these uncertain times, the dollar is at its strongest point since the mid-1980s. This presents problems. Commodities like oil and wheat, which are priced in dollars, become more expensive in terms of euros, yen, or pesos, fueling inflation, and reducing people’s purchasing power. Additionally, dollar-denominated debt of emerging market and developing countries becomes harder to repay as the dollar strengthens. In the face of these challenges, what would be appropriate policy responses by countries whose currencies are weakening? And by the Federal Reserve and the U.S. Treasury? Professor Maurice Obstfeld, widely recognized as a preeminent expert on the world economy, addresses these questions, and others, in this EconoFact Chats episode. Maury is a Professor at the University of California at Berkeley. He served as the Chief Economist at the International Monetary Fund from 2015 to 2018. Prior to that, he served as a Member of President Obama’s Council of Economic Advisers.

As of October 2022, the U.S. national debt stood at over $31 trillion. That amounts to nearly $90,000 of debt per citizen. But is there an upside to a government spending more than its tax revenues? How much should we worry about debt of this magnitude? Does history offer lessons for today? Barry Eichengreen joins EconoFact Chats to discuss these issues. Barry is the George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California at Berkeley. He has served as a senior policy advisor at the International Monetary Fund. His latest book is "In Defense of Public Debt."

The recent strength of the dollar highlights the impact exchange rate movements can have. In addition to economic impacts, these include far-reaching social and political effects too. Jeffry Frieden, a leading scholar on the political economy of exchange rates joins EconoFact Chats to discuss who gains and who loses from swings in exchange rates, their political implications, how political considerations affect the choice of whether to allow a currency to be determined by market forces or government policies and, in particular, how this applies to the adoption and maintenance of the Euro. Jeff is Professor of Government at Harvard University. His research focuses on the politics of international economic relations.

The United States economy is currently marked by high inflation, a strong dollar, rising food and energy prices, and historically low unemployment. The shortage of microchips presents another challenge, as do the ongoing consequences of climate change. Can the Federal Reserve lower inflation without sending the economy into a deep recession? Should the United States be incentivizing domestic manufacturing of advanced microchips? What will the Inflation Reduction Act mean for a transition to a greener economy? To address these questions, EconoFact Chats welcomes back Binyamin Appelbaum of the New York Times, Scott Horsley of NPR, Greg Ip of the Wall Street Journal, and Megan Greene, a columnist at the Financial Times and the Global Chief Economist at Kroll.

Given their critical role in everything from complex weapons guidance systems, to medical devices, video games, and watches, semiconductors today have much the same pervasive effects oil did in the 20th century; determining the economic fortunes of countries, the outcomes of wars, and the everyday lives of individuals. This week, Chris Miller of the Fletcher School joins EconoFact Chats to discuss his new book 'Chip War: The Fight for the World's Most Critical Technology,' highlighting among other things, the extraordinarily complicated, and geographically concentrated chip fabrication process, the geopolitical vulnerabilities that concentration raises, and the scope for the U.S. to onshore chip production. Chris is an Assistant Professor of International History at the Fletcher School at Tufts University. Chip War comes out on October 4th, 2022.

Most people don't think of economics as having a religious basis, and may question whether religion affects people’s views of economic issues. But in his recent book, 'Religion and the Rise of Capitalism,' our guest on EconoFact Chats this week, Professor Benjamin Friedman of Harvard University, discusses the influence of religion on economics, including how the ideas of the Social Gospel and the Gospel of Wealth played a role in the development of American economic thinking in the late 19th century, how religious thinking influenced people’s views of economic policy in the 20th century, and how that influence continues to the present day. Professor Friedman is the William Joseph Maier Professor of Political Economy at Harvard University. He has authored over 170 scholarly articles, and written or edited a dozen books, including The Moral Consequences of Economic Growth.

Sanctions in the wake of Russia's invasion of Ukraine have had less of an impact than initially hoped by the West, or feared by Russia. But Russia’s longer-term economic prospects don't look particularly good. Which sectors and segments of Russian society have Western sanctions affected most? How leaky have they been? What short and long-run effects are they designed to have? And are they likely to achieve their ultimate goal of making the cost of continuing the invasion of Ukraine too high? To discuss these issues, EconoFact Chats welcomes back Christopher Miller. Chris is an Assistant Professor of International History at the Fletcher School at Tufts University. His research focuses on Russian history, politics, and economics. He is the author of “Putinomics: Power and Money In a Resurgent Russia,” and "We Shall Be Masters: Russian Pivots to East Asia From Peter the Great to Putin."

The U.S. dollar recently traded at par with the euro for the first time in almost 20 years, and the dollar now buys more British pounds than at any time since the mid-1980s. While the strength of the dollar is good for American tourists in the U.K. and the Eurozone and for those in the U.S. purchasing imports from those countries, it presents challenges for American exporters and has other disruptive effects for the world economy.  Why is the dollar so strong? What are the implications for the U.S. and other countries? In the face of these currency swings, does it make sense to reconstitute a fixed exchange rate system in order to promote greater macroeconomic stability? EconoFact Chats welcomes Kathryn Dominguez of the University of Michigan to discuss these issues. Kathryn is a Professor of Public Policy and Economics at the University of Michigan. She is also a member of the panel of economic advisors at the Congressional Budget Office, and is on the Economic Advisory Panel of the Federal Reserve Bank of New York.

Inflation erodes purchasing power, but the reported inflation rate can mask very different experiences across groups of people. For example, the current rapidly rising rents and food and energy prices hit lower-income households harder since they spend a higher proportion of their income on these items. Dan Sichel discusses the measurement of inflation and how the single, headline statistic may not fully reveal the range of effects across income groups or categories of goods and services.   Dan is a professor at Wellesley College. He recently served as Chair of a National Academies panel that wrote the report “Modernizing the Consumer Price Index for the 21st Century”. He also worked at the Federal Reserve Board for over 20 years.

The pandemic has resulted in supply chain disruptions, and goods shortages across multiple industries. But few shortages have caught the public’s attention like that of infant formula. Kadee Russ of UC Davis joins EconoFact Chats to discuss some of the structural reasons behind this shortage, focusing on the role of regulation, the power of lobbying, the role of advertising, and the impact of trade restrictions. Kadee also highlights what good government policy for ensuring the supply of infant formula might look like. Kadee Russ is an Associate Professor of Economics at the University of California at Davis.