The global economy is going through a fundamental change as the policies that governed international trade and finance give way to a new order, writes RSM US Chief Economist Joe Brusuelas in the February issue of The Real Economy.
The era of easy money is over, replaced by a new era characterized by scarce capital, higher inflation and higher interest rates, he writes. For middle market businesses, this new period is forcing a rethinking of how to allocate capital and compete on the global stage.
Also in this issue, Brusuelas examines the potential impact of the Trump administration’s proposed policies, from higher tariffs to renewed tax cuts to debt-financed government spending. All of these policies could lead to higher growth, but also elevated inflation and a rising dollar. Many emerging economies with significant debt are facing a particular challenge as their currencies depreciate in the face of the rising dollar.
