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Forex Fundamental Analysis

Sat,10 Dec 2016-   FundamentalOutlook

 Trumponomics, a new field of economics that is going to be followed in the near future in U.S. Trumponomics basically refers to or in other words are those policies that are going to be trailed by U.S under the presidency of Donald Trump, who is elected as the new President of U.S on 8th November 2016. Trump won the U.S election on these policies of “trumponomics” which includes restructuring the trade agreements of U.S, personal and corporate tax cuts, reformation of trade deals of U.S and enormous fiscal incentives for infrastructure and defense.

Now referring to what he is planning about and what are the consequences of these policies.

Restructuring of trade policies: Trump plans to appeal trade battles with China, Canada and Mexico. Quick step in this regard is that Trump recently announced a withdrawal from TPP.

Personal and corporate tax cuts: A corporate tax cut from 35 percent to 15 percent is another policy plan that is going to be followed by Trump and this will result in a depreciation of U.S government revenue by $4.5 trillion within a time span of 10 years.

Enormous fiscal incentives for infrastructure and defense: These plans include an amount of $1 trillion that will be spent on the transformation of law enforcement agencies and on infrastructure projects.

Trump economic reputation to some extent is inflated. Whereas in the words of an economist of Bloomberg news, Kenneth Rogoff “You don’t have to be a nice guy to get the economy going. In many ways, Germany was as successful as America at using stimulus to lift the economy out of the Great Depression.” 

Aimen Tayyab

Financial Analyst