Will Trump's Tariff Plan Fly?

The video discusses Simon Johnson's analysis of potential tariffs under Donald Trump's administration, highlighting the economic implications such as increased costs and indirect taxation. Experts Luigi Zingales and Laura Ramos provide insights on job creation and market reactions, emphasizing the uncertainty surrounding Trump's policies. The discussion also covers potential economic outcomes, including GDP impacts and business interests, and examines the effects of tariffs on inflation and interest rates.

What is a potential consequence of imposing tariffs according to Simon Johnson?

• Decrease in import prices

• Increase in direct taxation

• Higher cost per job

• Reduction in sales tax

How have markets reacted to the potential policies of Trump's presidency?

• They have ignored all possible good news

• They have focused only on policy uncertainties

• They have priced in possible good news and ignored uncertainties

• They have remained completely stable

What is a likely outcome if severe protectionist measures are implemented?

• Decrease in US economic challenges

• Increase in GDP

• Challenges for the US economy

• Stability in trade relations

What factor could dampen inflation pressures in the US?

• Rising dollar

• Decreasing import prices

• Lower interest rates

• Increased fiscal spending

What is the Federal Reserve likely to monitor closely in 2017?

• Interest rate expectations

• Direct taxation policies

• Employment rates

• Trade agreements