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Reposted by Paul Blustein

Catherine Rampell @crampell.bsky.social · 13d

got some bad news for anyone who voted for Trump because he promised to bring down prices
www.ft.com/content/dd6d...

Donald Trump announces 100% tariff on branded pharmaceutical products

The US president also unveiled levies on heavy trucks, kitchen cabinets and bathroom vanities

www.ft.com

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Reposted by Paul Blustein

Mark Copelovitch @mcopelov.bsky.social · 17d

It's true & reflective of Trump's terrible economic policies, but it's also important to zoom out & remember that the level of the exchange rate is still near historic highs over the last two decades, & we've seen large-scale depreciations before that did not signal the end of dollar hegemony.

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Paul Blustein @paulblustein.bsky.social · 20d

...have I got a book for you!

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Paul Blustein @paulblustein.bsky.social · 20d

If the reasoning strikes you as tenuous--or (dare I say) moronic...

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Reposted by Paul Blustein

Paul Blustein @paulblustein.bsky.social · 26d

As the author of KING DOLLAR, which @B_Eichengreen would probably deem “Panglossian” for its conclusions, I guess I’d better say why I differ with him here.
(Thread, first posted in the other place)
www.wsj.com/finance/curr...

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Paul Blustein @paulblustein.bsky.social · 26d

Plus, there’s the dedication, in which I continue to take fiendish delight.
/end

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Paul Blustein @paulblustein.bsky.social · 26d

Time will tell. Whatever happens, I humbly submit that my book has a lot to offer, not least its explanation of how $-based sanctions work and its overarching theme, that the Spider-Man adage applies to the $—with great power comes great responsibility.

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Paul Blustein @paulblustein.bsky.social · 26d

Strange as this may sound, I hope my book is wrong. Trump loves coercing other countries with tariffs, and dollar dominance gives him an even more formidable weapon in the form of sanctions. I wish he didn’t have such power, but no good will come from pretending that it ain’t so.

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Paul Blustein @paulblustein.bsky.social · 26d

So doesn’t it give me pause that a scholar of his expertise and stature is taking issue with a central premise of my book? Of course it does, but I still think I’m right, and there are other knowledgeable experts in the field who agree.

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Paul Blustein @paulblustein.bsky.social · 26d

I’ve learned more about the dollar from @B_Eichengreen than from anyone else—his work is cited 20 times in the endnotes to my book! Most of my recent books have drawn heavily on his brilliant insights—about financial crises, the international monetary system, etc.

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Paul Blustein @paulblustein.bsky.social · 26d

But that doesn’t mean the dollar will lose the unique role it plays in intl transactions. Call me Panglossian all you like, but I remain steadfast in my conviction that the $ will retain that status, for reasons spelled out in this interview for @IntlEconomy.

www.dropbox.com/scl/fi/zuhjv...

www.dropbox.com

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Paul Blustein @paulblustein.bsky.social · 26d

Don’t get me wrong: alarm over the recklessness of Trump’s policies strikes me as fully warranted. A severe financial crisis could well be in the offing, and even if that doesn’t happen, America will end up considerably less prosperous than it would be otherwise.

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Paul Blustein @paulblustein.bsky.social · 26d

His tale is fascinating, recounted with characteristic elegance. But the events he cites came just at the outset of the dollar’s rise to dominance, way before the entrenchment of its status.
So should it shake confidence in the $’s intl role? Not much, IMHO.

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Paul Blustein @paulblustein.bsky.social · 26d

“Panglossian” is the word @B_Eichengreen applies to the view that USD dominance is secure b/c it has held that status for many decades and is widely used.
Look at the 1930s, when bad policy led to loss of $ primacy, he writes—it could happen again, given what Trump & Co. are doing.

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Paul Blustein @paulblustein.bsky.social · 26d

I do so with considerable trepidation, because there are few if any economists whom I hold in higher esteem.
(He’s not here on bsky, only on the other place.)

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Paul Blustein @paulblustein.bsky.social · 26d

As the author of KING DOLLAR, which @B_Eichengreen would probably deem “Panglossian” for its conclusions, I guess I’d better say why I differ with him here.
(Thread, first posted in the other place)
www.wsj.com/finance/curr...

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Paul Blustein @paulblustein.bsky.social · Sep 9

Thank you, @mariacrawford.bsky.social -- from my home in Japan, bowing as I type the words! (Eddie Fishman will hopefully find some other means of expressing his gratitude, since he's not in Japan.)

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Reposted by Paul Blustein

Karthik Sankaran @rajakorman.bsky.social · Aug 26

Term premium is the added compensation that investors demand for fear that appointees to a nominally independent central bank might withdraw or be fired on some pretext before the end of their term.

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Paul Blustein @paulblustein.bsky.social · Aug 25

Lest there be any misunderstanding (I was queried), the accolade my book received in FP was highly gratifying!
I mentioned the praise also heaped on the books by Rogoff and Fishman to avoid excessive self-aggrandizement--although I realize self-aggrandizement is not unheard-of on this site.

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Paul Blustein @paulblustein.bsky.social · Aug 23

The adjectives used to laud my book are a tad less glowing than the ones used for Ken Rogoff's book and Eddie Fishman's book, but I'm not complaining!
(And I'm honored to be in Ken and Eddie's distinguished company.)
foreignpolicy.com/2025/08/22/t...

The Future of the Dollar Lies Within

Dollar dominance is here to stay, if the United States can keep it.

foreignpolicy.com

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Paul Blustein @paulblustein.bsky.social · Aug 22

Look what came in the mail! Say, have you ever wondered what "To my grandchildren, whom I will always love unconditionally even if they grow up to like crypto" looks like in Korean? Well, now you know!

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Paul Blustein @paulblustein.bsky.social · Aug 21

Most of you on this site who are even slightly interested in trade probably know already how trenchant @alanbeattie.bsky.social's work is, but this column is especially deserving of commendation.

Alan Beattie @alanbeattie.bsky.social · Aug 21

My Trade Secrets today.

Everyone says Donald Trump conducts trade and tax policy like a mafia boss.

But dealing with him often means not just an offer you can’t refuse but an offer you can’t rely on — sometimes an offer you can’t understand.

on.ft.com/45KbJcQ

Trump’s roving banditry will undermine the US economy

[FREE TO READ] On tariffs and tax the president acts like a mafia boss, but not a very good one

on.ft.com

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Paul Blustein @paulblustein.bsky.social · Aug 20

My praise and gratitude are delayed b/c for the past 2 weeks I've been squiring around family members visiting Japan, where I live. And the visitors included those featured in the book's dedication: "To my grandchildren, whom I will always love unconditionally, even if they grow up to like crypto."

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Paul Blustein @paulblustein.bsky.social · Aug 20

An excellent article by @mcopelov.bsky.social, and I would say so even if it didn't include a nice shout-out for my book!
www.msn.com/en-us/money/...

MSN

www.msn.com

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Paul Blustein @paulblustein.bsky.social · Aug 20

For more on why you should be skeptical of dollar doomsaying, have I got a book for you!

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