THINKING ALOUD
Has the Iran war damaged US economic credibility?
Doubts about the dominance of the US dollar have resurfaced but markets have not voted with their feet
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THE evidence from 2026 tells a more nuanced story than a simple binary of “damaged” or “undamaged”.
It points to a currency and an economy under strain, propped up less by intrinsic strength than by the absence of better alternatives.
The war, which started on Feb 28, has visibly weighed on the real economy.
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