This podcast discusses economists analysis the unintended consequences of US sanctions on Russia. The sanctions, it argues, have damaged the credibility of the US dollar and Treasury bonds, leading to increased borrowing costs for the US government. This is due to foreign central banks diversifying their reserves away from the dollar, fearing asset freezes. The podcast explores potential ramifications, including higher inflation and a possible shift towards a multipolar financial system with alternative reserve currencies. It also considers the winners and losers in this potential reshaping of the global financial landscape.
