The "brilliant" nature of the economic policy conducted in the United States

The economic policy being conducted in the United States has two main components: An expansionary fiscal policy, with the tax cut on corporate earnings and the tax incentive to repatriate earnings held abroad; A monetary policy that is becoming moderately more restrictive, leading to higher interest rates than in other OECD countries. This economic policy, in addition to slightly higher interest rates, has provided the United States with a sharp increase in company results and share prices. This configuration has attracted capital to the United States, in bonds as in equities, at the expense of the rest of the world ( especially the euro zone and emerging countries). These capital flows have been attracted by the yield on US Treasuries and the returns in the US equity market, and have made it possible to finance , without any difficulty , the US external and fiscal deficits resulting from the economic policies implemented. We can see the "brilliant" nature of these policies: the world has financed at a low cost the deficits that have enabled the United States to shore up companies and the equity market .