The effect of Trump on the US economy

We are condemned to live in interesting times, and one of the most interesting things is what Trump's Presidency will do to the US economy.

Joe Stiglitz, a Nobel winning new-Keynesian economist, has written an opinion piece on what he thinks will happen. Some of this is beyond the new Year 12's at present, but will become clear soon. Notice in particular how Stiglitz links together different policy areas as a change affecting one part of the economic system affects others.

For example the idea that the USA will invest more than it presently saves to 'boost' economic growth leads to a rising current account deficit, which reduces Aggregate Demand and so dampens economic growth.

Stiglitz's implies Trump is just a blow-hard who does not understand economics. Can't argue with that.

Stiglitz's article is here

Pretty much essential reading for all IB students. Keep this bookmarked to refer back to.