Ezra Klein

But even bigger than that, the possibility that when you bring together our debt, now pressure on the dollar, Trump's behavior, that these things together could create a genuine financial crisis, a debt crisis, an inflationary crisis. He thinks we are way underrating the risk of it. As always, my email, EzraKleinShow at NYTimes.com. Ken Rogoff, welcome to the show. Thank you for having me, Ezra.

But even bigger than that, the possibility that when you bring together our debt, now pressure on the dollar, Trump's behavior, that these things together could create a genuine financial crisis, a debt crisis, an inflationary crisis. He thinks we are way underrating the risk of it. As always, my email, EzraKleinShow at NYTimes.com. Ken Rogoff, welcome to the show. Thank you for having me, Ezra.

So I want to get at the basics of how the dollar works in the international financial system. We sell dollars to other countries. Other countries buy them. Why?

So I want to get at the basics of how the dollar works in the international financial system. We sell dollars to other countries. Other countries buy them. Why?

And then we moved to it not being based on gold, it being based on trust in the United States and how we would manage the dollar.

And then we moved to it not being based on gold, it being based on trust in the United States and how we would manage the dollar.

But something you often run into when you start trying to study this or prep for conversations about it is the intensity of the demand for dollar-backed assets. And one thing other countries don't have is the depth of the assets we have to sell.

But something you often run into when you start trying to study this or prep for conversations about it is the intensity of the demand for dollar-backed assets. And one thing other countries don't have is the depth of the assets we have to sell.

And so it's not just that the dollar and dollar-backed assets like treasuries are, I think, though, I like the way you put it, are basically the lingua franca of international finance. It's also, there's enough of them to go around. There's just not as much liquidity in, you know, German currency back then.

And so it's not just that the dollar and dollar-backed assets like treasuries are, I think, though, I like the way you put it, are basically the lingua franca of international finance. It's also, there's enough of them to go around. There's just not as much liquidity in, you know, German currency back then.

What are the estimates of how much lower borrowing costs are, interest rates are in America, because the whole world is working off of our financial system?

What are the estimates of how much lower borrowing costs are, interest rates are in America, because the whole world is working off of our financial system?

So tell me about some of the other benefits. I mean, the dollar dominance, it gets called the exorbitant privilege. Your book is so interesting to read in this moment because it comes from the perspective of, that this is this huge privilege America has that the other countries in the world are growing tired of. And the question is, can we maintain it?

So tell me about some of the other benefits. I mean, the dollar dominance, it gets called the exorbitant privilege. Your book is so interesting to read in this moment because it comes from the perspective of, that this is this huge privilege America has that the other countries in the world are growing tired of. And the question is, can we maintain it?

And it comes out at this moment when you have administration that is more or less claiming it to be a burden that the other countries in the world are free riding off of and that we need to begin to pull it back. So why to the rest of the world does this seem like a great benefit for us?

And it comes out at this moment when you have administration that is more or less claiming it to be a burden that the other countries in the world are free riding off of and that we need to begin to pull it back. So why to the rest of the world does this seem like a great benefit for us?

So you sometimes hear this described negatively as... It's like the rest of the world are dope dealers to America, that it's made us addicted to debt because we can do this. Is this equilibrium where the rest of the world has made it so much easier for us to borrow and cheaper for us to borrow?

So you sometimes hear this described negatively as... It's like the rest of the world are dope dealers to America, that it's made us addicted to debt because we can do this. Is this equilibrium where the rest of the world has made it so much easier for us to borrow and cheaper for us to borrow?

Has that been good for us or has that, as you'll sometimes hear from the more austerity focused side of the debate, been a kind of net negative because it allowed us to be, in their view, irresponsible?

Has that been good for us or has that, as you'll sometimes hear from the more austerity focused side of the debate, been a kind of net negative because it allowed us to be, in their view, irresponsible?