After Russia invaded Ukraine in February 2022, Russia’s foreign exchange reserves held by the United States and its allies were frozen. Since then, some have proposed seizing those assets, which amount to nearly $300 billion, and using the proceeds to defend and rebuild Ukraine. Russian reserves could provide Ukrainians much-needed support as the war drags into its third year.
However, this policy is not without risk or controversy: Seizing foreign exchange reserves has little economic or legal precedent and uncertain long-run effects. In a new explainer, Sam Boocker, Alexander Conner, and David Wessel discuss efforts to seize Russia’s reserves and the possible consequences for the global financial system.
AI’s economic peril to democracy. Artificial intelligence (AI) poses a threat to democracy that is separate from the risks presented by deep fakes and misinformation.Stephanie A. Bell and Anton Korinek warn that an economic shock, like the large-scale displacement of workers by AI, could lead to avicious cycle that erodes democracy.
Consensus on Taiwan. U.S. Representatives Mike Gallagher (R-Wis.) and Raja Krishnamoorthi (D-Ill.) recently led a bipartisan delegation to Taiwan, emphasizing the strength of cross-party consensus on issues related to Taiwan and China. Despite the appearance of unity, there are sharp disagreements over how America should approach these issues, Ryan Hass explains in a Taipei Times op-ed.
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