Paul Krugman Discusses Government Shutdown, Rate Hikes, Recession, U.S.-China Trade

The video discusses the limited impact of the U.S. government shutdown on the economy, the Federal Reserve's rate decisions, and potential future actions. It predicts a possible recession due to accumulating economic issues and inadequate policy responses. The global economic risks, particularly in China and Europe, are highlighted, along with the U.S. trade conflict with China, which is largely driven by President Trump.

What are the implications of the Fed's potential shift to cutting rates in response to economic headwinds?

What are the two biggest risks facing the global economy as mentioned in the discussion?

How does the U.S. trade conflict with China reflect the influence of individual leadership?