tag:blogger.com,1999:blog-5713178645208582139.post6656573325006973491..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The Trump Shock and Interest RatesDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5713178645208582139.post-58217447587016927062016-12-17T08:39:40.558-06:002016-12-17T08:39:40.558-06:00I am not convinced Trump will tolerate large defic...I am not convinced Trump will tolerate large deficits. He has in the past promoted the "Penny plan" to reduce deficits, and appointed Mick Mulvaney to lead OMB, a notable budget hawk who supports a balanced budget amendment. <br /><br />The growth anticipated by the markets is not (necessarily) from deficit spending. It is from supply side reforms like reducing regulations. I am not dwbnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-56434379855936836622016-12-17T07:54:34.749-06:002016-12-17T07:54:34.749-06:00Is Beckworth simply reading tea leaves? I hope not...Is Beckworth simply reading tea leaves? I hope not, as robust economic growth would be welcome by everyone. He doesn't mention the projection of much higher government deficits (mostly from tax cuts at the upper end of the income scale). Does that mean Beckworth doesn't believe higher deficits increase interest rates? Or does it mean that Beckworth believes higher deficits will contributeraywardhttps://www.blogger.com/profile/03723450690502187828noreply@blogger.com