Category: Trade
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Tariff shocks and economic policy
Recent research examines the optimal monetary policy responses to tariff shocks, challenging conventional wisdom about inflation control. Is there an alternative approach to Trump’s proposed tariffs that could address economic dislocation?
Uncertainty, automation, and the future of global value chains
Two recent studies shed light on how uncertainty in developing countries and automation in developed countries are reshaping global production networks.
The hidden efficiency of the global trading system
Two recent research papers reveal, counterintuitively, that certain tariff structures can actually improve overall welfare and that the global trading system exhibits much more collaboration between nations than raw tariff data would suggest.
International power
Two recent papers explore the intersection of international trade and geopolitics by developing theoretical frameworks to analyze how countries can use economic policies like trade restrictions, capital subsidies, and infrastructure investments to strengthen their geopolitical bargaining power and prepare for potential conflicts.
The tariffs on Chinese EVs: a misguided policy?
Why the U.S. and EU tariffs on Chinese EVs make no sense: opinions from both side of the Atlantic.
On industrial policies
Industrial policies have regained prominence in both advanced and developing economies: new research highlights some positive effects of modern industrial policy and how it can be implemented effectively.
The challenges of the current international trade rules system
New research on how international power impacts trade rules and why the current international trade rules system is unraveling.
The escalation of the U.S.-China trade war
New research on how the shift in expectations to a prolonged trade war accounts for the increase in expected future U.S. tariffs on China.
Financial aspects of trade
How does trade uncertainty influence bank lending and how does a currency become dominant in trade transactions?
On the decoupling of supply chains
Supply chains are decoupling along geopolitical lines: What is the economic impact? Which countries will end-up bear the costs?