Sixteen of the world’s most notable economists — all Nobel Prize winners — are warning that former President Donald Trump could stoke inflation if he wins the presidency in November and moves forward with his economic plans. 

“Many Americans are concerned about inflation, which has come down remarkably fast. There is rightly a worry that Donald Trump will reignite this inflation, with his fiscally irresponsible budgets,” according to a letter signed by the economists, who include Joseph Stiglitz, a Columbia University professor who won the Nobel prize for economics in 2001; and Yale professor Robert Shiller, who won the Nobel prize for economics in 2013. 

The warning comes as the U.S. continues to battle sticky inflation, with the Federal Reserve maintaining the highest interest rates in more than two decades with the goal of cooling the economy and driving inflation down to a 2% annual rate. Even though inflation has cooled from a recent peak of 9.1% in June 2022, inflation-weary Americans are glum about the economy, with 6 in 10 rating it as either bad, fairly bad or very bad, according to the latest CBS News poll. 

Trump’s policies could prove to be inflationary, other economists also warned, such as his proposal to create a 10% across-the-board tariff on all imports to deporting immigrants. The tariff plan would add $1,700 in annual costs for the typical U.S. household, essentially acting as an inflationary tax, according to experts at the Peterson Institute for International Economics. 

Deporting immigrants could shrink the labor force, creating more competition for U.S. workers and pushing up wages, also adding to inflationary pressure, economists warn. 

While the letter from Stiglitz and the other 15 Nobel Prize winners didn’t detail the specifics of any part of Trump’s plans, it did single out praise for some of President Joe Biden’s economic policies, ranging from his Inflation Reduction Act to investment in U.S. manufacturing. 

“In his first four years as President, Joe Biden signed into law major investments in the U.S. economy, including in infrastructure, domestic manufacturing and climate,” the letter said. “Together, these investments are likely to increase productivity and economic growth while lowering long-term inflationary pressures and facilitating the clean energy transition.”

They added, “While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden’s economic agenda is vastly superior to Donald Trump’s.”

“Top economists, Nobel Prize winners, and business leaders all know America can’t afford Trump’s dangerous economic agenda,” Biden campaign spokesperson, James Singer, told CBS MoneyWatch.

 “In Donald Trump’s America, the rich pay less, and working Americans pay more,” he added.

“The American people don’t need worthless out-of-touch Nobel Prize winners to tell them which president put more money in their pockets,” Trump campaign national press secretary Karoline Leavitt said in an emailed statement to CBS MoneyWatch.

If re-elected, Trump plans to implement a “pro-growth, pro-energy, pro-jobs agenda to bring down the cost of living and uplift all Americans,” she added.

“We the undersigned”: Read the letter

You can read the text of the letter below:

We the undersigned are deeply concerned about the risks of a second Trump administration for the U.S. economy. 

Among the most important determinants of economic success are the rule of law and economic and political certainty. For a country like the U.S., which is embedded in deep relationships with other countries, conforming to international norms and having normal and stable relationships with other countries is also an imperative. Donald Trump and the vagaries of his actions and policies threaten this stability and the U.S.’s standing in the world. 

While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden’s economic agenda is vastly superior to Donald Trump’s. In his first four years as President, Joe Biden signed into law major investments in the U.S. economy, including in infrastructure, domestic manufacturing, and climate. Together, these investments are likely to increase productivity and economic growth while lowering long-term inflationary pressures and facilitating the clean energy transition. 

During Joe Biden’s presidency we have also seen a remarkably strong and equitable labor market recovery — enabled by his pandemic stimulus. An additional four years of Joe Biden’s presidency would allow him to continue supporting an inclusive U.S. economic recovery. 

Many Americans are concerned about inflation, which has come down remarkably fast. There is rightly a worry that Donald Trump will reignite this inflation, with his fiscally irresponsible budgets. Nonpartisan researchers, including at Evercore, Allianz, Oxford Economics, and the Peterson Institute, predict that if Donald Trump successfully enacts his agenda, it will increase inflation. 

The outcome of this election will have economic repercussions for years, and possibly decades, to come. We believe that a second Trump term would have a negative impact on the U.S.’s economic standing in the world and a destabilizing effect on the U.S.’s domestic economy. 

Signed, 

George A. Akerlof (2001) 

Sir Angus Deaton (2015) 

Claudia Goldin (2023)

Sir Oliver Hart (2016) 

Eric S. Maskin (2007) 

Daniel L. McFadden (2000) 

Paul R. Milgrom (2020) 

Roger B. Myerson (2007) 

Edmund S. Phelps (2006) 

Paul M. Romer (2018) 

Alvin E. Roth (2012) 

William F. Sharpe (1990) 

Robert J. Shiller (2013) 

Christopher A. Sims (2011) 

Joseph E. Stiglitz (2001) 

Robert B. Wilson (2020)