This podcast episode explores the impact of the US dollar's reserve currency status on the US economy, discussing the concerns raised by politicians and the potential negative effects. The conversation emphasizes the need to manage the situation and consider the trade deficit and living standards. It also explores the idea that living standards in the rest of the world should improve to encourage a healthy rebalancing of the economy. The episode delves into the contradictory relationship between inflation and full employment and the need to prioritize financial stability, full employment, and a diversified domestic production base. Different approaches to reducing the dollar's role as a reserve currency are discussed, along with the trade policy of President McKinley and the potential consequences of implementing tariffs.
