Matthew Blakey
Though often viewed as blunt, outdated, and inflationary instruments, tariffs may offer the United States a strategic path forward. As Stephen Miran, Chairman of Trump’s Council of Economic Advisors, argues, tariffs—if used correctly—can help restructure the global trading system, rebalance fiscal policy, and preserve American competitiveness.
The Harvard-trained economist and former senior Treasury advisor penned a trailblazing November 2024 essay titled “A User’s Guide to Restructuring the Global Trading System”, in which he argues that tariffs, when combined with strategic policy can be noninflationary and revenue- generating tools that advance US interests.
In the paper, which has largely flown under the radar, Miran presents a view in which America’s vast trade deficits, manufacturing decline, and fiscal imbalance are the expected consequences of America’s role as the issuer of the world’s reserve currency. This arrangement requires the U.S. to run “twin defects”- by issuing vast quantities dollar-denominated assets like Treasuries and simultaneously becoming a net-importer to supply the world with dollars needed for global transactions.
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