Report
If Donald Trump wants to stimulate demand in the United States, there are better ways than using fiscal and monetary policies
Donald Trump is concerned about a growth slowdown in the United States, and: Has announced that there may be fresh tax cuts; Is putting pressure on the Federal Reserve to cut interest rates. But an increase in the fiscal deficit in the United States will also worsen the external deficit, with the risk that it may become difficult to finance . Cutting interest rates would not be very effective , given their very low current level. The simplest and most effective way to stimulate demand in the United States would be to correct the skewing of income distribution at the expense of employees and to increase wages, especially low wages.
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Patrick Artus
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