The Rest Is Money 146. Does Trump Risk Sparking A Global Financial Crisis?
Mar 13, 2025
Andy Haldane, Chief Executive of the Royal Society of Arts and former chief economist at the Bank of England, dives deep into the potential fallout from Trump's policies on global finance. He discusses how trade tariffs impact the automotive sector and raises concerns over rising U.S. economic instability. Haldane analyzes the interconnectivity of global markets, especially the U.S. dollar's role, while examining Europe's resilience and innovation amid crises. He also poses questions about regional financial fragmentation and the future of policy reforms.
AI Snips
Chapters
Transcript
Episode notes
Tariffs Hurt Citizens
- Most economists believe tariffs make citizens worse off, not better off.
- Trump's tariff policy seems driven by brinksmanship, not sound economics.
Trump's Tariff Denial
- Robert Wright witnessed Trump denying tariffs' negative impact on US businesses and citizens.
- Trump claimed producing countries pay tariffs, not the imposing country's citizens.
Market Reactions to Tariffs
- Investors initially believed Trump wouldn't impose tariffs, causing market optimism.
- Markets reacted negatively when Trump followed through, surprising investors and suggesting a tolerance for economic pain.