Paul Krugman's "What is really going on?" list makes sense to me.
Well, this looks pretty ignominious. On one side, the trade war was a bad idea; on the other, climbing down after all that bluster looks really, really weak. And you have to wonder what's really going on 1/ https://t.co/nL63oX3oTR— Paul Krugman (@paulkrugman) May 21, 2018
Possibilities:— Paul Krugman (@paulkrugman) May 21, 2018
1. Someone finally explained the economics to Trump
2. Trump just lost his nerve
3. Trump got a personal payoff
4. The Chinese also have a tape
The thing is, while (1) is wildly implausible, 2-4 all seem quite possible 2/
-RW
UPDATE
But now, we have this:
Via CNBC:
Just think of it as Billy Preston trade policy.
Meh, don’t look a gift horse in the mouth.
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