mentary: Trump must ‘get real on trade’
By Steve Hanke in Baltimore
The US trade deficit is not made by foreigners who engage in unfair trade practices; it is homegrown. To the extent that domestic savings in the US fall short of domestic investments, the economy must import more than its exports, resulting in a negative trade balance.
If Trump’s fiscal deficits are not offset by an increase in private savings relative to private investment, increases in the federal deficit will translate into larger trade deficits. It’s time for the president to connect the dots and get real on trade.
Read the full commentary on the website.
Mark Sobel, US chairman of OMFIF, speaks with Nellie Liang, senior fellow in economic studies at the Brookings Institution.
They discuss developments in macroprudential regulation in the US since the 2008 financial crisis, including policy-makers’ key tools, the role of stress tests and future policies.
Listen to the recording, or search for OMFIF on your smartphone’s podcast app.