Tired of Winning Yet?

Maia Mindel: “… the trade deficit is not a major problem for any economies: […] when a country has an inflow of currency due to trade, its economy has higher inflation, resulting in a stronger currency in real terms and therefore in a reduction of the deficit. So eventually, unless the government maintains it, the deficit would disappear and so would a surplus - except that tariffs would, as mentioned before, make the economy much poorer and smaller in order to achieve it.”