Prof. Schlevogt’s Compass No. 41: Dutch disease, US strain – Dollar dominance hollows out industry

The US faces a dilemma of abundance as reserve-currency primacy abroad quietly crowds out production at home. The US labors under a paradox of preeminence: the dollar’s exclusive status as the world’s reserve currency, a structural advantage so durable it has come to feel like destiny. The “exorbitant privilege” lowers borrowing costs and weakens fiscal […]