Page 21 - CRF News 1Q 2018

have aggressively expanded operations in the countries with which they do business, exporting less to these countries and producing more in them. This is a different business model than
is generally pursued by export powerhouses China, Japan and Germany, but it has been
highly successful. Not only do U.S. multinationals dominate global commerce, but they have been instrumental in U.S. so-called soft power— spreading U.S. culture and political and economic mores to the rest of the world. Simply focusing on trade as a barometer of success misses, and will almost surely undermine, this broader global relationship.
Anti-trade policies represent a negative supply shock to the economy. In the near term, higher tariffs and less trade will result in less growth
and higher inflation, increasing the risk the economy will overheat. Longer run, less trade will weigh on productivity growth, as the benefits of comparative advantage and global competition are diminished. The economy’s supply side seems increasingly unlikely to rescue this expansion.
About the Author:
Mark M. Zandi is chief economist of Moody’s Analytics, where he directs economic research. Moody’s Analytics, a subsidiary of Moody’s Corp., is a provider of economic research, data and analytical tools.
He is a co-founder of Economy.com, which Moody’s purchased in 2005.
Dr. Zandi conducts regular briefings on
the economy for corporate boards, trade associations, and policymakers at all levels.
He is often quoted in national and global publications and interviewed by major news media outlets, and is a frequent guest on CNBC, NPR, CNN, Meet the Press, and various other national networks and news programs.
Expect the Unexpected in Commercial Credit.
. Predictive spend analysis aids thousands of companies in profitability and risk mitigation.
. Self-serve data warehouse gives you access to credit decisions, reports & monitoring in real time.
. Deeper level of portfolio analysis available in minutes with batch file appends.
Join the fastest growing commercial credit bureau.
OOuurarakkljdlsfljdkfa
cortera.com | 877-569-7376
21
©2018 Credit Research Foundation