The Dollar-and the Fed-Still Rule

The video discusses the economic interdependence between the US and China, highlighting China's reliance on easy money and the US's economic influence. It explores the global economic landscape, focusing on the role of the US dollar in trade and reserves. The challenges faced by the Federal Reserve in maintaining stability are examined, with a particular focus on Janet Yellen's role as a central figure in global economic policy.

What is the 'exorbitant privilege' associated with the US dollar?

• The global influence and dominance of the US dollar

• The ability to print unlimited money

• The privilege of setting global interest rates

• The US's control over China's economy

What percentage of global trade is conducted in US dollars?

• 50%

• 70%

• 90%

• 30%

What is a potential downside of the US's economic power?

• It limits the Federal Reserve's actions

• It causes inflation in the US

• It reduces global trade

• It weakens the US dollar

What is one of the main challenges faced by Janet Yellen as mentioned in the transcript?

• Balancing US economic growth with global stability

• Increasing US interest rates

• Reducing US unemployment

• Managing US-China trade relations

Why are modern economic issues challenging for policymakers?

• They are predictable and easy to solve

• They are not covered in traditional textbooks

• They are too simple to address

• They only affect the US economy