The tariff hikes, announced in March and paused for 90 days, are unlikely to resolve the fiscal deficits of the world’s largest economy and may instead prompt other countries to decouple their trade and financial systems from the US, he warned.“If there's a lot of disruption to the dollar status, if people stop trusting the dollar and if they stop trusting the US as a responsible custodian of global economic stability, those advantages to the US go away,” he said in a recent interview with The Korea Economic Daily.RETURN TO NORMALCY?
Obstfeld, a senior fellow of the Peterson Institute for International Economics, also cautioned the US would not be able to restrore the trust it once enjoyed in the global trading system within just a few years.“We're in the middle of a very turbulent period, and it's impossible to say when normalcy will return, if it will ever return,” he said STEPHEN MIRAN'S PAPERThe former chief economist of the International Monetary Fund rebuffed the recent remarks by Stephen Miran, chairman of President Trump’s Council of Economic Advisers.
"It seems to be good time for Korea to join the CPTPP and strengthen ties with regional partners with ASEAN and extended ASEAN countries, because a lot of countries in the region are in a similar situation.”The CPTPP stands for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Obstfeld is a co-author of “International Economics: Theory and Policy” alongside Paul Krugman, professor at the City University of New York Graduate Center and Marc Melitz, professor at Havard University.
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