Buiter: Economy Could Have Some Improvement Under Trump

The transcript discusses the potential impact of fiscal stimulus under Donald Trump's administration, focusing on infrastructure spending, tax cuts, and deregulation. It highlights the challenges of funding these initiatives and the potential market reactions. The discussion also covers political dynamics, regime change, and the implications for inflation and business confidence.

What is one of the main challenges in using fiscal stimulus to boost GDP according to the discussion?

• It always leads to inflation.

• It is too expensive to implement.

• It requires international cooperation.

• It does not change long-term economic trends.

What is a potential source of funding for increased fiscal spending?

• International loans

• Foreign aid

• Market borrowing

• Increased taxes

What is dynamic scoring in the context of fiscal policy?

• A method to predict inflation rates

• A way to measure GDP growth

• A technique to evaluate tax cuts

• A strategy to balance the budget

What does the term 'regime change' refer to in economic history?

• A change in international trade agreements

• A transition in currency valuation

• A major change in economic policy

• A shift in political leadership

What is a potential risk associated with the Trump regime change in economic policy?

• Decreased business confidence

• Reduced private sector investment

• Lower inflation expectations

• Increased borrowing costs