Roubini Warns of 'Perfect Storm' for U.S. Economy in 2020

The video discusses the implications of fiscal policies on the US economy, highlighting the doubling of the budget deficit and the minimal growth impact of tax cuts. It explores the effects of fiscal stimulus, interest rates, and global monetary policies, predicting higher long-term interest rates and a potential economic slowdown by 2020. The video also examines stagflationary policies, trade restrictions, and their impact on growth and inflation, emphasizing the need for tighter monetary policies to manage inflation expectations.

What is the expected impact of tax cuts on GDP growth over a decade?

• A minimal increase of 0.1%

• No change in GDP

• A significant increase in GDP

• A decrease in GDP

What is the expected trend for long-term interest rates in the US?

• They will decrease significantly

• They will remain stable

• They will continue to rise

• They will fluctuate unpredictably

What is one of the main reasons for the expected economic slowdown by 2020?

• Increased government spending

• Technological advancements

• Trade restrictions and capital market frictions

• Decrease in global population

How are central banks expected to respond to stagflationary shocks?

• By easing monetary policy

• By tightening monetary policy

• By maintaining current policies

• By increasing government spending

What is a potential consequence of not addressing inflation expectations?

• A balanced budget

• An increase in inflation expectations

• Stable economic growth

• A decrease in inflation