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Phys.org reporter Steve Brooks referenced research co-authored by Columbia Business School Professor Stijn Van Nieuwerburgh in an article examining how the U.S. benefits from the dollar’s global dominance. Citing findings from Exorbitant Privilege Gained and Lost: Fiscal Implications, the piece explains that America’s ability to borrow at favorable rates depends heavily on the dollar’s status as the world’s primary reserve currency. The research warns that weakening this position would constrain fiscal capacity, raise borrowing costs, and limit policymakers’ room to respond to economic shocks.
