Price of global privilege could be much higher with higher defense outlays, Hanno Lustig argues

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20.05.2026

Price of global privilege could be much higher with higher defense outlays, Hanno Lustig argues — Defense spending may lift privilege cost

Hanno Lustig examines the potential cost associated with the so-called "exorbitant privilege," suggesting that if such privilege requires outspending adversaries on defense, the price may be significantly higher than commonly believed.

Lustig discusses a research paper by Carolin Pflueger and Pierre Yared that explores this topic in further detail.

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Lustig has previously raised concerns about central bank policies, referencing lessons from the Eurozone on the limits of central bank independence and narrow mandates. He has also analyzed shifts in national economic standing, noting Russia's rapid per-capita GDP growth relative to the United States. The latest discussion continues Lustig's examination of fiscal and economic power on the global stage.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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