Why populist strongmen love low interest rates, what Trump’s tariffs mean for India, and more

Why populist strongmen love low interest rates, what Trump’s tariffs mean for India, and more

Welcome to edition #90 of PS Economics, a weekly newsletter highlighting commentary on the most important issues in economics and finance.


Europe Needs a Euro Stablecoin

Lucrezia Reichlin highlights a key shortcoming in the European Union’s strategy for strengthening its autonomy in payments.


What Will Remain After the AI and Crypto Bubbles?

William H. Janeway worries that the financial and scientific foundations of the American innovation economy are breaking down.

Worried about an AI bubble? Carl Benedikt Frey, the author of How Progress Ends: Technology, Innovation, and the Fate of Nations, will share his thoughts on why many AI investments are underperforming in tomorrow’s PS Longer Reads and Interviews newsletter. Sign up here.


Attacking the Federal Reserve Is Self-Defeating

Simon Johnson shows why the Trump administration’s no-holds-barred campaign for lower interest rates is likely to backfire.


Why Do Populist Strongmen Love Low Interest Rates?

Şebnem Kalemli-Özcan points out that populists often view central banks as a tool to mask the effects of their misguided policies.


 The Failure of Anti-Austerity Populism

Kenneth Rogoff explains how the era of cheap money limited policymakers’ ability to respond to future shocks.


 The Myth of American Deindustrialization

Jorge Arbache and Otaviano Canuto show that the United States has not lost manufacturing capacity, but rather internationalized it.


 What Trump’s Tariffs Mean for India

Kaushik Basu, Jayati Ghosh, Ajay Shah, and others consider the merits and limits of the country’s response to US economic coercion.


 The Incalculable Costs of Corrupt Statistics

Diane Coyle explains the threat manipulation of official data poses to investor confidence and government effectiveness.


 Make America Sick Again

Jeffrey Frankel marvels at the MAGA movement’s apparent commitment to reversing progress on public health. 


Decision-Making in the Face of Chaos

Dambisa Moyo offers a four-point strategy for weighing investment or policy choices during uncertain times.


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