Patrick Artus, Research Analyst at Natixis, suggests that the fact that the United States is increasing the fiscal deficit when the country is in the vicinity of full employment is often criticised. Key Quotes “If this fiscal deficit helps finance investments (corporate, in infrastructure) that increase US potential production, it makes sense, even at full employment: it can be financed (and the resulting US external deficit can be financed) without any difficulty at low interest rates by attracting capital from the rest of the world.” “It is rather intelligent to let the rest of the world finance investments that boost US potential growth.” “The introduction of protectionism in the United States is, by contrast, difficult to understand. Observations over the last 20 years seem to show that the substitutability between domestic production and imports is low in the United States.” “The main effect of customs tariffs is then an increase in the price of US imports (and hence a decline in real income, rise in inflation and the risk of a rise in interest rates) without reducing imports in volume terms.” “So, Donald Trump’s economic policy is a mix of the understandable and the incomprehensible.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/GBP range for now but lower eventually – Danske Bank FX Street 5 years Patrick Artus, Research Analyst at Natixis, suggests that the fact that the United States is increasing the fiscal deficit when the country is in the vicinity of full employment is often criticised. Key Quotes "If this fiscal deficit helps finance investments (corporate, in infrastructure) that increase US potential production, it makes sense, even at full employment: it can be financed (and the resulting US external deficit can be financed) without any difficulty at low interest rates by attracting capital from the rest of the world." "It is rather intelligent to let the rest of the world finance investments that boost… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
