Report
Donald Trump is an economic genius
Donald Trump has understood that he could use the dollar’s dominant international currency role to run up a massive fiscal (and therefore external) deficit at full employment in the United States while keeping interest rates very low, since these deficits are financed without any difficulty thanks to the dollar’s role. The stimulation of demand at full employment ("overheating") drives companies to increase their productivity gains , to be able to produce more, and to accept hiring less employable candidates, leading to an increase in the participation rate. The higher productivity gains and the rising participation rate enable growth to persist and remain strong despite the return to full employment, and also lead to increased potential growth. This extension of vigorous growth will obviously be politically positive for Trump, who "brilliantly" uses the dollar’s reserve currency role and overheating policies (stimulation of demand at full employment).
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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