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Should free trade be opposed on inequality grounds? In a new paper (Artuc et al. 2019a), we answer this question by providing estimates of income gains and inequality costs resulting from unilateral import tariff liberalisation for 54 low- and middle-income developing countries.
Jul 28, 2019 · Free trade means that countries can import and export goods without any tariff barriers or other non-tariff barriers to trade. Essentially, free trade enables lower prices for consumers, increased exports, benefits from economies of scale and a greater choice of goods.
- New Administration, Same Protectionism
- Trade and Inflation
- Liberalize Geopolitics
- The Inevitable Backlash
Biden has done more than maintain Trump’s protectionist trade policies. In addition to continuing his predecessor’s trade war tariffs, Biden has doubled down on so-called Buy America restrictions—rules that wall off federal purchases from foreign competition—cloaking his actions in the mantle of patriotism. Such policies signal that foreign firms, ...
Given the economic costsof protectionism, trade liberalization must be a central part of any anti-inflation policy. After all, cutting tariffs and removing import quotas will lower the costs of imported goods purchased by U.S. firms and households. At the same time, cheaper foreign goods will put downward pressure on domestic prices for competing m...
Beyond combating inflation, trade liberalization can also serve U.S. geopolitical objectives. Protectionist sentiments, for instance, will inevitably undermine two of Biden’s major international initiatives: the Indo-Pacific Economic Framework (IPEF), which aims to counter China’s economic statecraft,and the U.S.-EU Trade and Technology Council (TT...
Although eminently sensible in economic and geopolitical terms, trade liberalization will inevitably face challenges from business and labor groups. Beneficiaries of protectionism, after all, have strong allies in Congress and in the Biden administration. Biden himself described Buy America rules as a cornerstone of his foreign policy, and major U....
- Gary Hufbauer
Apr 19, 2024 · The current high rate of inflation is a result of increased money supply, high raw materials costs, labor mismatches, and supply disruptions—exacerbated by geopolitical conflict. In general, there are two primary types, or causes, of short-term inflation:
Seemingly small international trade linkages can lead to substantial spillovers across countries, helping explain global comovement in GDP growth and inflation across countries.
Jul 15, 2024 · This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline consumer price index (CPI) inflation in G7 countries, over the past half-century.
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Oct 3, 2018 · As a result, the world integrated economically at an unprecedented pace. The single greatest advance was the integration of Europe’s small and fractured markets into the largest free trade...
