Markus Brunnermeier on US Dollar, Deficits, & Safe Assets: Are We Entering a New Global Economic Order?

On Thursday, April 17, Markus Brunnermeier had a conversation on US Dollar, Deficits, & Safe Assets: Are We Entering a New Global Economic Order? Markus Brunnermeier is the Director of the Bendheim Center for Finance.

Watch the full presentation below. You can watch all Markus’ Academy webinars on the Markus’ Academy YouTube channel.

Timestamps:

[0:00] Geopolitical shifts

[12:39] What is a Safe Asset?

[23:10] Deficits, Tariffs, and the Exorbitant Privilege

[45:33] Trade Chokepoints 101

Executive Summary

A few highlights from the discussion.

Key Questions

• How can we make sense about recent geo-political shifts and uncertainty?
• What role do the dollar and U.S. Treasuries play in the global financial architecture?
• Is the safe asset status at risk? Would tariffs help? What are the implications for exchange rates and term premia? 
• How should we think about choke points in international trade?

Click here for the full summary