The Global Economy's "Doom Loop": Eswar Prasad on Dollar Dominance & Globalization

Has the global economy entered a destructive feedback loop? In this episode of Beating Sisyphus, we sit down with Eswar Prasad, Tolani Senior Professor of International Trade Policy at @Cornell and Senior Fellow at the @BrookingsInstitution .We dive into his latest book, Doom Loop, to explore how the forces once thought to bring global stability—globalization, international organizations, and the rise of middle powers—are now clashing with domestic politics and geopolitics. Eswar breaks down why the US dollar remains dominant despite domestic instability, the barriers holding back the Chinese Renminbi, and the urgent need to rebuild global institutions like the IMF and WTO.https://www.amazon.com/Doom-Loop-Economic-Spiraling-Disorder/dp/1541705939Produced in collaboration with the Cornell Emerging Markets Institute, join hosts Thomas Riveros and Lourdes Casanova as they explore how innovation emerges under pressure and what it takes to build a more stable global economic future.

Topics Covered:

- Eswar Prasad’s unexpected journey into economics

- The evolution from The Dollar Trap to the Doom Loop

- Why central banks can't escape the US Dollar

- The future of the Chinese Renminbi and capital controls

- How globalization impacts domestic inequality and political polarization

- The role of "Middle Powers" like India in a fractured world

Timestamps

00:00 - Introduction to Beating Sisyphus

00:29 - Introducing Eswar Prasad and his new book, Doom Loop

02:05 - Eswar’s journey into the field of economics

03:55 - The shift from "The Dollar Trap" to a more pessimistic outlook

06:18 - Is globalization a zero-sum game?

08:35 - Why the US Dollar maintains global dominance despite instability

14:39 - The barriers holding back the Chinese Renminbi

19:48 - Does globalization directly cause domestic inequality?

24:24 - "Unfair" trade practices and China's manufacturing power

27:59 - The crisis of credibility for global institutions (IMF, WTO)31:34 - The dilemma of "Middle Powers" in global geopolitics

35:51 - A call to action for the future of democratic institutions

38:45 - Why India holds immense potential as an emerging market