Can Donald come up trumps?

I have recently been reading an article titled “Can Donald come up trumps?” in an edition of Business Spotlight of January 2017 and it talks about the effects of the Trump presidency.

I thought you might be interested in this text because we all know who Donald Trump is and his ideas.

Basically, what it says is that since Donald Trump is the head of the United States the economics have changed. Ian McMaster, who is the author pointed out some facts what Mr. Trump thinks about monetary and fiscal policy, “Trumponomics” and “Trumpflation”. Serious pessimists use those words if they talk about Economics and Inflation in the US.

First of all, the author mentioned that it may come as a shock to half of Americans and most Europeans, but just because Donald Trump suggests something doesn’t necessarily mean that it is wrong.

Following Trump’s election, the stock market in America rose. It is also said that there was a rise in the interest rates on US government bonds. But the other side of the same coin is that there also was a fall in such bonds. The reason for this reaction is the President’s promise of a huge increase in government spending to improve the country’s ageing infrastructure. What shocked me was that he wants a large cut in taxes, including those paid by companies. The author explains that such a fiscal boost would tend to increase demand, employment and inflation, what Ian McMaster calls “Trumpflation”. And this means that investors want the Fed, which is the US central bank to raise its interest rates more quickly.

But aren’t higher interest rates good news? In a way, yes, but higher interest rates will also cause a further rise in the Dollar. An important point which is mentioned is that Donald Trump will soon discover that running the economy is not as easy as making campaign promises.

I think that not everything what Trump says is wrong. In my opinion the way he tries to run the entire world is not okay.

What do you think about Donald Trump and his ideas on monetary policy?