What was uncharacteristic about this crisis is that much of the world fled into U.S. Treasuries during the contagion, allowing the U.S. government to keep borrowing and the dollar to appreciate—the opposite of what would happen to an emerging market in crisis—because the dollar retained its reserve-currency role and there was no viable alternative ('the tallest pygmy').

factualpending

Speaker

Carmen Reinhart

Evidence Quote

during the height of the crisis the alternative to dollar asset we're not there

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

My Notes

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