Hitting out at the Trump administration for his protectionist measures, Federal Reserve Bank of New York President and Chief Executive Officer William C Dudley (in pic) said that those kind of measures could be destructive for the economy.
“Protectionism can have a siren-like appeal. Viewed narrowly, it may be potentially rewarding to particular segments of the economy in the short term. Viewed more broadly, it would almost certainly be destructive to the economy overall in the long term,” Dudley said, while speaking at the Bombay Stock Exchange. The New York Fed chief, however, did not name anyone when it comes to protectionist measures.
There are many approaches to dealing with the costs of globalisation, but protectionism is a dead end. Trade restrictions address the symptoms and not the underlying problems, and they introduce other costs and distortions, Dudley said, adding that while such measures might generate temporary boosts to growth from greater domestic production and consumption, these would likely be offset by a range of other costs.DH News Service
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