Global Macro Research

America's dollar, the world's problem?

In the latest episode of our Macro Bytes podcast we focus on the impact of a strong US dollar for the US and other economies and whether this might change in future.

Authors

Paul Diggle

Chief Economist

Luke Bartholomew

Deputy Chief Economist

Date: 17 May 2024

The US dollar is different to every other currency. The dollar is the global reserve asset, and its dominant status means dollar strength has important global spillovers. Paul and Luke discuss why the dollar has been appreciating recently, why this matters, how the dollar became so important, the benefits and drawbacks this brings to the US, and why a potential second Trump presidency could drop the US’s long-standing commitment to a strong dollar.

Transcript

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