US Elections: More of the same or time for fiscal reforms? – Goldman Sachs

FXStreet (Delhi) – Research Team at Goldman Sachs, suggests that it is difficult to foresee the economic and political implications of a new administration in the US.

Key Quotes

“But, there is no shortage of reforms (health spending and social securities, public investment programmes, redistribution policies, corporate tax reforms, student debt, to name a few areas) that could change the medium-term outlook for the US economy. As an example, a business friendly corporate tax reform and an increase in business investment would reduce the risk that the US could be in a ‘secular stagnation’ and would support higher long-term real rates. Nominal rates would likely increase by less if a social security reform were enacted at the same time, helping to keep any future increase in US debt under control.”

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