Much of the IMF's wet blanket on financial market euphoria can be sheeted home to the shifting political situation, particularly in America.
Donald Trump has promised to cut taxes and erect of wall of trade barriers around the world's biggest economy should he be elected president later this year.
"The potential for significant swings in economic policy as a result of elections this year, with negative spillovers to the rest of the world, has increased the uncertainty around the baseline," the report notes.
"These potential shifts entail fiscal profligacy risks that will worsen debt dynamics, adversely affecting long-term yields and ratcheting up protectionism."
LIONK so Trump is going to cut taxes.... hey hey hey heeeeeyyyy free money. whats not to like
and hes bringing back trade barriers..... isolation and insulation from the world is not a bright idea. he's heading back to the 1940s US.
so how does govt pay for the services the nation needs if he shrinks both the govt revenue and business trade. shrinking the economy while consumers have more money to burn is inflationary.
