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The American Populist Reckoning

The most likely outcome of Donald Trump's presidency will be slower growth, further increases in inequality, and erosion of public services. And America’s ability to out-innovate others, including China, will take another blow.

WASHINGTON, DC – Populism is an approach to government that relies on lavish promises that ultimately cannot be met. The most prominent historical cases since 1945 were, for a long while, mostly found in Latin America. There are always apologists who claim that a new source of economic miracle has been discovered. But the ending is always the same: some form of crisis and disaster. Populism today is again in the ascendancy, but now one of the most virulent forms is in the United States – and with the credibility of the central bank very much on the line.

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