Why markets are shrugging at Trump’s war on the Fed, France’s manufactured debt drama, and more
Welcome to edition #91 of PS Economics, a weekly newsletter highlighting commentary on the most important issues in economics and finance.
The US Tightens the Dollar’s Death Grip on Brazilian Democracy
Camila Villard Duran explains how the greenback’s dominance forces governments to align with American policy priorities.
In a new edition of PS Say More, Carl Benedikt Frey, the author of How Progress Ends: Technology, Innovation, and the Fate of Nations, examines AI’s resilience problem. Read now.
Global Trade Is Winning Trump’s War On It
Daniel Gros points out that even US import demand appears to be withstanding the introduction of tariffs.
Europe Must Use Its Economic “Bazooka” Against the US
Moreno Bertoldi and Marco Buti explain why activating the Anti-Coercion Instrument now could protect the bloc from Trump’s latest attack.
Why Are Financial Markets Shrugging at Trump’s War on the Fed?
Barry Eichengreen tries to make sense of investors’ seeming indifference to growing threats to the central bank’s independence.
Is a French Sovereign-Debt Crisis Looming?
Desmond Lachman anticipates considerable market turmoil before the European Central Bank comes to the rescue.
A New Economics for Neglected Places – Free to Read
Paul Collier offers a way to remedy the problems confronting left-behind communities, towns, and regions.
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Trump’s Tariffs Will Widen the North-South Divide
Qiyuan Xu and Yutao Huang highlight the impact of US trade barriers on debt, growth, and development in developing economies.
Why Are Markets Ignoring the Obvious About America?
Erin Lockwood offers six possible explanations for capital owners’ muted reaction to Donald Trump’s destructive agenda.
France’s Manufactured Debt and Government Drama
Jean-Pierre Landau explains why the government’s attempts to scare people into accepting fiscal consolidation backfired.