Unlike NAFTA, the problem of free capital mobility is a recurrent and on-going one.it is important to realise that many economists including the International Monetary Fund have revisited their take on the desirability of free capital mobility and they have come to terms that there is a pertinent role for continued capital flow controls.
Judis: In his campaign and presidency, Donald Trump has made a big issue of America’s trade deficit, and has cited China, Mexico, and Germany for blame. When Trump was in Europe recently, he attacked the Germans for having a trade surplus. He even threatened to block German car exports to the United States. Do you think he wasjustified?
Judis: Where do you see the disconnect?
Rodrik: Trump’s proposed remedies to the grievances picked up from angst and the anxiety caused by job losses have little to no chance of working. What he promised was way overboard, some radical, for instance building thewall and imposing 35% tariffs on all imports from china.