Citi's Buiter Says Economy Could `Surprise' as Trade Fears Diminish

The video discusses the misconceptions in media coverage of trade wars, emphasizing the focus on rhetoric over reality. It explores the initial stages of US-imposed tariffs and the potential for escalation. The discussion includes game theory, President Trump's mercantilist strategy, and its economic implications. The fear of trade wars is noted to dampen global growth, though not necessarily leading to a downturn. Policy recommendations for the US government include addressing the federal deficit and ensuring trade rhetoric does not become self-fulfilling.

What are the potential economic impacts of trade wars mentioned in the text?

What recommendations does the speaker provide for the White House regarding trade?