Financial sanctions have emerged as powerful weapons in the current geopolitical landscape. In this paper, we use a graphical framework to trace their macroeconomic implications, highlighting lessons for the status of the US dollar as a reserve currency, sovereign debt crises, and the fragmentation of capital flows.
No takes yet. Share an insight, caveat, or question.
Bianchi et al. (2023) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: