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The Geopolitical Imperative to Upgrade the Dollar

In the wake of the Western economic sanctions against Russia, many countries have begun establishing their own payment systems for international transactions. Over time, these new systems could reduce demand for the dollar, increase costs for US borrowers, and undermine America’s national-security interests.

CAMBRIDGE, MA/WASHINGTON, DC – In a 1955 speech to a group of investment bankers, then-US Federal Reserve Chair William McChesney Martin shared a story about an economics professor who always administered the same exam. When asked how any student could possibly fail such a test, the professor replied, “The questions don’t change, but the answers do.”