"More Concerned than Ever about Dollar" | Prof. Eichengreen on Why Reserve Currencies Fail

Barry Eichengreen, Professor of Economics and Political Science, University of California, Berkeley, and renowned economic historian, unpacks the fascinating rise and fall of currencies like the Roman Aureus, Dutch Guilder, and British Pound, revealing why the US dollar became the dominant global currency after WWII—and why that dominance might not last forever.In this episode, Barry shares unexpected insights from centuries of monetary evolution, illustrating how wars, empire shifts, and political power shape currency status.You'll discover the key steps that turn a national currency into a global reserve—an evolution often rooted in military strength and political stability.But also how historic financial infrastructure laid the foundation for America's dollar hegemony post-1945 and what risks threaten its future.And why the recent moves by China, Europe, and other economies are signals of a potential currency transition, and what it means for global liquidity and stability.The intriguing possibility of a (digital gold) or a new international monetary system—could blockchain and central bank digital currencies prevent a looming crisis?For anyone curious about how history repeats itself—or how future monetary crises could reshape the world—this episode is essential listening. Barry Eichengreen’s expertise offers a rare, data-driven perspective on the next chapter of global finance—and how you can prepare for it.Get Barry's book here:https://www.amazon.com/Money-Beyond-Borders-Currencies-Croesus/dp/0691280533Follow Barry on X here:https://x.com/B_EichengreenFollow Paul on X here:https://x.com/paulbuitink

Research Deutsche Bank here:

https://www.dbresearch.com/PROD/IE-PROD/PDFVIEWER.calias?pdfViewerPdfUrl=PROD0000000000625515&rwnode=REPORT

Timestamps:0:00 Intro2:44 World reserve currencies from the past6:51 Pound sterling vs US dollar 10:43 The importance of allies and an empire13:23 War and the rise and fall of currencies15:23 Financialization19:06 The exorbitant privilege23:44 Petrodollar27:34 Main threats for the dollar30:27 Gold repatriation34:12 US debt issues and Trifin Dilemma36:39 The ideal monetary system40:54 Why the renminbi is not taking over45:40 Bifurcation of the financial system47:40 Discussion on gold, crypto, CBDC and stable coins52:05 Outro