What does the election of Donald Trump mean for macroeconomics? Above all else, it means that the half-century-long challenge to Keynesian ideas is over. The insurgents lost. First, some background. During the Great Depression, John Maynard Keynes suggested that government spending would boost the economy, by increasing aggregate demand. In a recession, there are unused resources — empty offices, ...

  There are times when a confluence of events creates a rare opportunity. The U.S. now is at one of those the moments. To wit: As of January, a single party will control the executive and legislative branches of government; Campaign promises were made by the president-elect to upgrade infrastructure; The U.S. federal debt is almost $20 trillion; The U.S. ...

  Mihir Sharma US President Barack Obama’s the Trans-Pacific Partnership, his signature trade pact, is very likely dead. President-elect Donald Trump swept to victory in part by railing against such massive trade deals. Today, few in Washington would dare to challenge the view that globalization has benefited cheaper foreign workers at the expense of hard-working Americans. But Washington’s politicians, Donald ...