Prof Andrew Velasco cautions against rising economc populism. He says though there are no immediatesigns of stress post Brexit and Trump against expectations but in long run things will turn around for worse. How long is anybody’s guess:
In the United States, academic economists repeatedly warned that Trump’s economic plans were little short of lunacy, and in the aftermath of his shocking election victory, some prophesied immediate economic catastrophe. Since then, the stock market has reached record heights, commodity prices have recovered, and forecasts of US economic growth keep rising.
Have the pundits been smoking something? Or have Trump and pro-Brexit leader Nigel Farage abrogated the principles of introductory macroeconomics?
Nothing of the sort. But to understand the effects of populist policies, one must first understand their logic. In a classic paper, Sebastian Edwards of UCLA and the late Rudiger Dornbusch of MIT define economic populism as “an…
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Utopia, you are standing in it! 
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