Nations with more policy space can better allay US tariff impact: BMI
The ability of policymakers to mitigate potential negative growth shocks from US tariffs through effective counter-cyclical policies varies across economies, according to BMI. Economies with more policy space like Germany and Indonesia are better positioned to mitigate potentially adverse tariff effects, while those with limited space, such as Japan and Brazil, may struggle to respond effectively.
The ability of policymakers to mitigate potential negative growth shocks from US tariffs through effective counter-cyclical policies varies across economies, according to BMI.
Economies with more policy space like Germany and Indonesia are better positioned to mitigate potentially adverse tariff effects, while those with limited space, such as Japan and Brazil, may struggle to respond effectively.
