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Podcast: Money Life with Chuck Jaffe
Episode: Chicago economist says 'Stagflation is the most likely forecast'
Description: Economist Steven Durlauf, director of the Stone Center for Research on Wealth Inequality and Mobility at the Harris School of Public Policy Studies at the University of Chicago, says that the federal budget deficit is the biggest source of the country's trade deficit, meaning politicians have failed "to seriously address the relationship between what the government wishes to do and how much it costs." If politicians can't cut budget deficits and, potentially, raise taxes, Durlauf says, tariffs won't fix the problem, and will cause new troubles. Durlauf sees the tariffs creating a one-time price hike of 2 to 3 percent, he...