How will Trumponomics work out? This is a question that many people are asking, including Olivier Blanchard (see here). Blanchard focusses on three broad policy characteristics of Trumponomics: tariffs, tax cuts, and mass deportations of illegal immigrants. His analysis is based on "textbook macroeconomic principles." His conclusion is that the president-elect will be disappointed with the results, but that the outcome will not be the catastrophe that many are predicting. This may very well b...
