- Paul Krugman said dollar dominance is overrated, and isn’t worth more to America than “a fraction of 1% of its GDP.”
- The Nobel Prize-winning economist criticized Elon Musk for being among those warning that the US is “weaponizing” the dollar.
- “So ignore all the dollar doomers out there. Or better yet, consider what their hyping of a nonissue says about their own judgment,” he wrote in a New York Times op-ed.
Nobel Prize-winning economist Paul Krugman said that the dollar’s dominance of global trade and investment flows is overrated, and isn’t worth more to America than “a fraction of 1% of its GDP”.
In an op-ed for the New York Times on Tuesday, Krugman once again attempted to quash fears that the greenback’s leadership of global trade and investment flows is waning and could soon be threatened by other currencies like the Chinese yuan.
“Even if you believe that the dollar’s dominance is in imminent danger — which you shouldn’t — a look at what that dominance actually entails makes it clear that the importance of controlling the world’s reserve currency is greatly overrated,” he wrote.