For nearly three generations, the United States and scores of other nations have prospered through trade governed by international rules. But in the last couple of years, University of Minnesota economist Tim Kehoe has watched with alarm as global trade pacts have come under attack by the Trump Administration. In a recent interview, Kehoe outlined the risks of a new era of America First trade policies.
University of Minnesota economist Manuel Amador studies what causes less-developed countries to pile on more debt than they can repay, what happens next, and the stakes the rest of the world have in the financial fitness of relatively small national economies.
New research from Manuel Amador and his coauthor Mark Aguiar finds that creditor beliefs regarding future borrowing can be self-fulfilling, leading to multiple equilibria with markedly different debt accumulation patterns.
Government spending and monetary policy have consequences not only for the pace of economic growth, but for who shares in prosperity. Recent research by Anmol Bhandari aims to refine the relationship between cause and effect. It’s a problem not only of mathematics, but of revising the way economists think about policy choices.