Blowing Up The Deficit
- There are good reasons to assume that Trump’s tax cuts aren’t likely to increase economic growth by all that much.
- But they are likely to blow up the budget deficit and run into a more active Fed.
- The combination of loose fiscal policy and tightening monetary policy will lead to higher rates and capital inflows, a higher dollar and increased trade deficit.
- As a result, risks in the world economy will increase.
Blowing Up The Deficit | Seeking Alpha
Tags: Public sector deficits and debts