Reinforced Relationships Outside U.S. Suggested for Japan by Former IMF Economist
In an interview conducted in Washington, D.C. on August 12, 20XX, former International Monetary Fund Chief Economist Maurice Obstfeld shared his concerns about the current U.S. policies and their impact on the global economic order.
Obstfeld predicts that the U.S. policies, including high tariffs, tax laws, and large federal deficits, are undermining confidence in the U.S. dollar and the global economic system. These policies, he believes, are encouraging trade partners to deepen economic integration with countries other than the United States, leading towards a multipolar international monetary system.
The former economist views the U.S. dollar as remaining central but notes challenges due to changes like capital outflows and trade shifts influenced by U.S. economic policies. He emphasizes that protectionist policies like tariffs are generally counterproductive, reducing productivity and growth, and that restoring solid confidence and cooperation is necessary for sustainable trade balances and global economic stability.
Obstfeld's prediction implies a significant and lasting change in the global economic landscape. He warns that these U.S. actions are disruptive to global trade and economic integration and advocates for stronger cooperation among other global regions like Asia and Europe.
The interview with Obstfeld was conducted by Jiji Press. It's important to note that Obstfeld is not currently associated with the International Monetary Fund. He states that the current administration's policies are driving trade partners to deepen integration with countries other than the United States, challenging the existing U.S.-centric economic system and accelerating the emergence of a multipolar global economic order.
Obstfeld expressed concern about the policy measures, which he believes expand the federal debt and increase unpredictability. He predicts that the world will not return to its pre-2017 state for a long time, if ever. In response to these disruptions to the global economic and financial order, Obstfeld has advised Japan to strengthen its cooperation with Asian and European countries.
In summary, Obstfeld's forecast is that the U.S. policies currently reduce trust in the dollar and push global trade partners toward economic integration that excludes the U.S., challenging the existing U.S.-centric economic system and accelerating the emergence of a multipolar global economic order. His advice to Japan and other countries is to strengthen their cooperation to maintain global economic stability and sustainability.
- The general-news involving the former International Monetary Fund Chief Economist, Maurice Obstfeld, indicates that his concerns about the current U.S. policies, such as tariffs, tax laws, and federal deficits, could impact global finance by undermining confidence in the U.S. dollar and the global economic system.
- In the realm of politics and business, Obstfeld predicts that these policies are encouraging trade partners to deepen economic integration with countries other than the United States, which could lead to a shift in the global economic landscape and the emergence of a multipolar international monetary system.
- In light of these developments, Obstfeld advises countries, like Japan, to strengthen their cooperation with other global regions, such as Asia and Europe, to maintain global economic stability and sustainability, as the world may not return to its pre-2017 state for a long time, if ever.
