“Trumpflation” Likely Won’t Work For The Economy

“Evidence shows that when the debt-to-GDP ratio exceeds 70%, the [government spending] money multiplier goes into reverse. And real GDP declines… If the money multiplier turned negative when the debt-to-GDP hit 70%… how about when it’s 150%? We wish Trump all the best. But the math might have him in handcuffs from day one. “Trumpflation” could well become stagflation.” ”