Nobel Prize Laureate Paul Krugman Warns of Disruption in Financial Markets Without US Dollar
Nobel Prize-winning economist Paul Krugman says that no currency can play the role of the U.S. dollar. Commenting on the de-dollarization trend and the possible U.S. default, he emphasized that without the USD, “financial markets will be disrupted by the lack of any safe, liquid asset.” Economist Paul Krugman on De-Dollarization and USD Alternatives Paul Krugman, who won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2008 for his analysis of trade patterns and location of economic activity, shared his opinion Sunday about a possible U.S. default and the U.S. dollar losing its status as the world’s reserve currency. He explained in a tweet: The risk from a debt default is *not* that some other currency will take over the key role now played by dollar securities. It is that *no* currency will be available to play that role — that financial markets will be disrupted by the lack of any safe, liquid asset. Krugman is not worried about the U.S. dollar l