economy
February 17, 2026
Prof. Schlevogt’s Compass No. 41: Dutch disease, US strain
The US faces a dilemma of abundance as reserve-currency primacy abroad quietly crowds out production at home
TL;DR
- The US faces a "dilemma of abundance."
- The US dollar's reserve-currency primacy abroad is causing it to strengthen.
- A stronger dollar makes imports cheaper and exports more expensive.
- This situation may lead to domestic production being crowded out by foreign goods.
Continue reading the original article