Mr. Trump and the Economics Textbooks

Graham Bird

World Economics, 2026, vol. 27, issue 1, 43-62

Abstract: Mr. Trump began his second term as President of the USA in January 2025 As he had during the presidential campaign, he stated his main economic objectives, with a key one being to reduce the size of the US current account balance of payments deficit. He implemented or stated his preference for the design of a range of economic policies including fiscal policy, monetary policy and trade policy. Other policies related to the value of the dollar and the supply side of the US economy. Mr. Trump's policy approach frequently contradicts that found in textbooks of economic principles. This article investigates the differences and examines their consequences. The article also considers why it is that Mr. Trump's approach to economic policy differs from that found in the textbooks.

Date: 2026
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