Financial Times (July 28)
“The world was in striking agreement on one point: if Donald Trump went ahead with tariffs, it would strengthen the dollar and trigger stagflation.” It hasn’t, even though the “effective US tariff rate has already risen from 2.5 per cent to 15 per cent.” This outcome is unlikely to upturn conventional tariff wisdom. The U.S. is not “really enjoying a free lunch, taking in $300bn a year in tariff revenues with none of the expected heartburn.” It is much more probable that other factors, like AI’s explosive growth, have hidden the impact. The most likely culprit is “the timeworn mistake of employing simple models…. Complex economies are rarely shaped by just one factor, not even a shock as big as Trump’s tariffs.”
Tags: 15%, Agreement, AI, Complex economies, Conventional wisdom, Dollar, Free lunch, Hidden, Impact, Simple models, Stagflation, Tariffs, Trump, U.S.
The Economist (September 4)
“By the age of seven months, most children have learned that objects still exist even when they are out of sight.” Understanding object permanence “is a normal developmental milestone, as well as a basic tenet of reality. It is also something that self-driving cars do not have. And that is a problem.” Though autonomous vehicles “are getting better,” they still are unable to “understand the world in the way that a human being does. For a self-driving car, a bicycle that is momentarily hidden by a passing van is a bicycle that has ceased to exist.”
Tags: Autonomous vehicles, Bicycle, Children, Developmental milestone, Hidden, Human, Object permanence, Reality, Self-driving cars, Seven months
Financial Times (March 30)
“The real eurozone problems are hidden under the bonnet…. The most important adjustment that needs to take place is a convergence of prices and labour costs.”
Tags: Adjustment, Convergence, eurozone, Hidden, Labour costs, Prices, Problems
