Economist Blanchard Says Trump Needs to Overheat Economy

The video discusses the need for economic growth and how fiscal deficits can be used to achieve it, touching on Keynesian and supply-side economics. It explores the role of immigration in economic growth, highlighting potential costs and political backlash. The video also analyzes trade deficits, emphasizing the importance of saving and investment over bilateral trade views. It concludes with a discussion on the WTO's role in international trade and the limitations of bilateral trade negotiations.

What is one method mentioned to achieve better than average economic growth?

• Overheating the economy

• Reducing fiscal deficits

• Increasing interest rates

• Decreasing government spending

What is a potential consequence of removing 11 million immigrants from the US?

• Increased economic growth

• Reduced economic costs

• Significant economic costs

• Improved political stability

What is the primary source of the US trade deficit according to the transcript?

• High national investment

• Low national savings

• German exports

• Chinese imports

What is the stance on bilateral trade negotiations according to the transcript?

• They are preferred by the WTO

• They are less attractive economically

• They are the only viable option

• They are more attractive economically

What role does the WTO play in international trade according to the transcript?

• It has no influence on trade policies

• It is considered obsolete

• It is still a key institution

• It only supports bilateral trade