Maxwell School News and Commentary

“When China and Brazil sign an agreement like this, it’s trying to put into place the infrastructure that would make it possible to use China’s currency, but that doesn’t mean that individual firms are going to choose that,” says Daniel McDowell, associate professor of political science.

Daniel McDowell, associate professor of political science, discussed the implications of sanctions for the dollar's status, the relationship between dollar dominance and U.S. sanction capabilities, and the response of U.S. major rivals to these measures.

"Returns to Scale in Property Assessment: Evidence from New York State’s Small Localities Coordination Program," co-authored by Maxwell professors Yilin Hou and John Yinger, was published in the National Tax Journal.

Daniel McDowell, associate professor and director of undergraduate studies in political science, has written a new book, “Bucking the Buck: US Financial Sanctions and the International Backlash Against the Dollar” (Oxford University Press, 2023). 

Ryan Monarch, assistant professor of economics, says it would be more difficult for China's manufacturing industry to transition to the high-end amid deteriorating U.S.-China relations and the decoupling of business between the two countries.

It’s unlikely anything will be done in the near term, in part because of the current lack of bipartisanship in Washington, says Gary Engelhardt, professor of economics.

While Russia’s use of the yuan doesn’t mean the end of dollar supremacy, it may usher in the beginning of a more fractured system that could ultimately blunt the U.S.’s ability to use financial sanctions as a weapon, says Daniel McDowell, associate professor of political science.

"Offshoring barriers, regulatory burden and national welfare," co-authored by Professor of Economics Devashish Mitra, was published in Indian Economic Review.

"Gold has become an attractive hedge against sanctions risk for central banks at risk of such penalties. While there are limitations to gold's usefulness compared to, say, U.S. Treasuries, its unique appeal is found in its physical form, unquestioned value, and the ability to store bars in national vaults, safe from foreign seizure," says Daniel McDowell, associate professor of political science.

“When interest rates were very low, companies basically had endless money—and investors were telling them to focus on growth, not profitability,” says Aaron Benanav, assistant professor of sociology. “But because interest rates are rising, there’s a shift from big investors to say, ‘No, now you really have to focus on profitability.’ And the big way to do that is through cuts.”