Author Archives: Menzie Chinn

More on the Mar-o-Lago Accord Malarky: “be afraid…be very afraid”

From Steve Kamin, two pieces: [1] [2]. A succinct summary:

So all told, Miran’s suggested options to lower the dollar while containing interest rates would be ineffectual, destabilizing, and ultimately for no good purpose. In his conclusion, he acknowledges some of these risks, but argues that because of Trump’s focus on financial markets, “I therefore expect that policy will proceed in a gradual way that attempts to minimize any unwanted market consequences…” Well, if the past few weeks of trade policy are any indication, be afraid . . . be very afraid!

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