The Establishment’s Big Guns Come Out Blazing Against Tariffs
Olivier Blanchard is a renowned economist—former chief economist of the IMF, Robert M. Solow Professor Emeritus at MIT, and Senior Fellow at the Peterson Institute for International Economics. When he speaks, the establishment listens.
So, when Blanchard took to social media Wednesday morning—or “Liberation Day,” as President Trump is calling it—with a long post warning that Trump’s forthcoming tariffs could plunge the U.S. economy into recession, the commentariat responded with glee that their bias against Trump’s economic proposals was being confirmed from on high. His argument boils down to this: tariffs may initially reduce imports and boost domestic demand, but that effect will be offset by rising interest rates, a stronger dollar, falling exports,
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