Middle East Tensions Rising Again? Kenneth Rogoff on Shift Toward a Multipolar World | N18S

Added: 2026-05-23

[00:00:00]So, do you think then this is an opportunity for countries like China and India and the BRICS nations to try and push for this uh multipolar currency world?

[00:00:10]Oh, 100%. I mean, it's not just that this is the moment, but these things take a long time to build the financial infrastructure. China needs to at least open up its Treasury bill market, improve the work internal workings of its Treasury bill market. It doesn't need to open up its capital markets entirely, but it has homework to do. Um but I don't think there's any question, even if things calm down, they're going to have a very convincing argument that something needs to be done. Let me tell you, the Europeans are energized to have their own financial infrastructure to protect themselves from financial sanctions. They too are suddenly working very hard at this. When Donald Trump talked about annexing Greenland, and by the way, that's going to come.

[00:01:05]Financial sanctions on Europe was going to be one of the first weapons, and they know that. And so, I think I think the whole world is looking at the United States, how reliable an ally is it, how much can we trust the rule of law. And it's not that the dollar is going away, but it's a strong argument to have other ways of doing business in case you need it.

[00:01:29]One last question before I let you go, uh Professor Rogoff. If you were advising the Indian government today, what would be your top economic priority for India to focus on, say, in the next uh year or so?

[00:01:43]Well, I mean, I think, you know, the big thing is to try to cushion the poor from this. Where I I think the Modi government's done a very good job on that overall, but that's this is a very difficult period and you know, try to maintain that the education system. But I don't think this is a position to close yourself to trade. I don't think this is a situation where you want to close yourself to trade. India still could benefit a lot by opening itself to global supply chains. It has benefited enormously from that. It can benefit more as being a more neutral country compared to China.