While most analysts are prophesying the doom of the US dollar, there are some that still believe in its strength. It is true that the greenback is going through hard times and forex experts are predicting the end of the US dollar hegemony. However, former Treasury Secretary, chief economist at the World Bank, and Ex-President of Harvard University Larry Summers thinks otherwise.
"The dollar is the world’s safe haven. It’s the place that money moves into when people get nervous about the state of the world," Summers said in an interview. It means that the US currency is likely to weather any storm. Thus, in case of the global crisis, the US dollar will be more resilient to external headwinds than other countries. He is sure that the US dollar will not crash even despite the $16 trillion debt pile. "All of the dangers are on the side of spending too little right now, rather than spending too much," he pointed out. He also added, "while it is right to worry about the country's rising debt, a near-zero interest rate environment implies that the government can afford to borrow more".
Summers reckons that the coronavirus pandemic will cost the US economy $16 trillion exceeding by four times the economic fallout from the Great Depression. The economist also suggests that the government should provide more financial assistance to unemployed and low-income families rather than lend money to credit-worthy corporations.