Trumponomics

The economic policies of US President Donald Trump, who took office in January 2017.

Trumponomics - the return to boom and bust?

"... there is a new noun in town - Trumponomics.

The new president's set of ideas seem to combine an odd mix of fiscal reform, infrastructure spending and isolationism on international trade and foreign policy.

So far, markets have priced in all the good news, the positive elements of Trump's plans, while discounting the scary stuff, such as a possible US trade war with China or the possibility that Trump actually goes ahead with his [wall] building plans at the Mexican border.

Done right, pro-growth policies should boost US growth... to the benefit of the global economy.

But if Trump's policies create excess demand in the US and elsewhere, that could nourish the exuberance and credit excesses that would eventually need to be corrected by a recession after the boom.

So, 2020 - watch this space."

The Treasurer magazine, February 2017 p15 - Kallum Pickering, senior UK economist at Berenberg Bank.

See also

• Agent based modelling
• Business cycle
• Fiscal policy
• Infrastructure
• Macroeconomics
• Recession