Money meets geopolitics

There are periods in human history when money and foreign policy converge—and this is one of them, says Paul Tucker, my guest on the latest New Money Review podcast.Tucker, deputy governor of the Bank of England for several years in the aftermath of the 2008 financial crisis, is now a fellow at Harvard University’s Kennedy school of public policy and government.During what is his first-ever podcast interview, Tucker talks about his new book, ‘Global Discord: Values and Power in a Fractured World Order’.In the book, Tucker lays out principles for a sustainable system of international cooperation, showing how democracies can deal with China and other illiberal states without sacrificing their deepest political values.Drawing on three decades' experience as a central banker and regulator, Tucker applies these principles to the international monetary order, including the role of the US dollar, trade and investment regimes and the financial system.During the podcast, we discuss:Why economic policy and foreign policy are convergingDo US/China interdependencies make the world safer or riskier?Proxy wars, Russia/Ukraine and the wider US/China conflictThe relevance of the 18th century competition between England and FranceWhy shadow banking policy should be part of national security policyWhy central banks need to disclose on what terms they will bail out shadow banksThe recent liability-driven investment (LDI) crisis in the UKHow to resolve failing cross-border financial institutionsWhy the monetary architecture faces its biggest changes in 250 yearsEnsuring public oversight of digital currenciesWhy G7 governments should set out design principles for CBDCsWhy the West cannot afford another financial crisisIf you enjoy the New Money Review podcast, please like it or review it on your preferred podcast platform. And why not share an episode with a friend or colleague?