“We rarely think about chips, yet they’ve created the modern world,” writes the historian Chris Miller. He’s not exaggerating. Semiconductors don’t just power our phones and computers; they also enable our cars, planes and home appliances to function. They are essential to everything from developing advanced military equipment to training artificial intelligence systems. Chips are the foundation of modern economic prosperity, military strength and geopolitical power. But semiconductors are also part of one of the most concentrated supply chains of any technology today. One Taiwanese company, TSMC, produces 90 percent of the most advanced chips. A single Dutch firm, ASML, produces all of the world’s EUV lithography machines, which are essential to produce leading-edge chips. The entire industry is built like this. That doesn’t just make the chip supply chain vulnerable to external shocks; it also makes it easily weaponizable by the powers that control it. In October, the Biden administration banned exports of advanced chips — and the equipment needed to produce those chips — to China. In August, President Biden signed into law the bipartisan CHIPS and Science Act, which includes a $52 billion investment to on-shore U.S. chip manufacturing. China has invested tens of billions of dollars over the past decade to build a domestic semiconductor industry of its own. Chips have become to the geopolitics of the 21st century what oil was to the geopolitics of the 20th. There is no better or more timely explanation of the semiconductor industry — and the geopolitics that have formed around them — than Miller’s new book, “Chip War: The Fight for the World’s Most Critical Technology.” So I asked him on the show to talk me through what semiconductors are, why they matter and how they are shaping everything from U.S.-China relations and the Russia-Ukraine war to the Biden policy agenda and the future of A.I.

“From the U.S. Federal Reserve’s initial misjudgment that inflation would be ‘transitory’ to the current consensus that a probable U.S. recession will be ‘short and shallow,’ there has been a strong tendency to see economic challenges as both temporary and quickly reversible,” writes the economist Mohamed El-Erian. “But rather than one more turn of the economic wheel, the world may be experiencing major structural and secular changes that will outlast the current business cycle.” There are few people who understand financial markets or central banking as deeply as El-Erian. He is the chief economic adviser at Allianz, the president of Queens’ College, Cambridge, and the author of multiple books, including, most recently, “The Only Game in Town: Central Banks, Instability and Recovering From Another Collapse.” Until 2014, he was the C.E.O. of PIMCO — which under his leadership was the largest bond manager in the world. In recent years, markets have been roiled by significant shocks — from a global pandemic that snarled supply chains and disrupted labor markets to a Russian invasion of Ukraine that sent global commodities markets into a tailspin. But El-Erian believes we’re also witnessing a deeper structural shift in the very nature of the global economy. Economic policymakers today are trying to bring the economy back to that of 2019, but in El-Erian’s view, there is no going back. We’ve entered a new era that demands a different kind of response. So I invited El-Erian on the show to help me understand the economic era he thinks we’re entering and how policymakers can respond. We discuss whether the United States is experiencing a permanent decline in labor force participation, why modern supply chains could continue to experience difficulties well beyond the pandemic, how changing U.S.-China relations could unleash inflationary pressures throughout the world, how the Fed’s efforts to stabilize financial markets may have ironically opened the door to the financial collapse, why El-Erian believes a decade-plus of easy money was a colossal mistake, what lessons developing countries learned from the 2008 financial crisis, the parts of the global financial system most at risk of melting down today, El-Erian’s scathing critique of the Fed’s communication strategy and more.