How do tariffs hurt the dollar?
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How do tariffs hurt the dollar?
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Roughly two thirds of countries on Earth stabilize their currency against the U.S. dollar. The relationship has benefits in both directions: Smaller countries enjoy better stability for their national currencies, and U.S. companies and government get low borrowing rates, among other benefits. But a new BPEA paper, "Trade War and the dollar anchor," highlights how U.S. tariffs and retaliatory tariffs by other countries are putting pressure on the dollar's place at the heart of world monetary system. On this episode of the Brookings Podcast on Economic Activity, one of the paper's coauthors, Tarek Hassan of Boston University, will speak with Brookings Director of Trade and Economic Statecraft Kari Heerman about his study.
Show notes and transcript
The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.
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