1/4
Trump’s former chief economic adviser Gary Cohn is quoted here as saying that he does not think the trade tariffs that the Trump administration imposed on China worked because the US has continued to experience record trade deficits.
scmp.com/economy/china-…
Trump’s former chief economic adviser Gary Cohn is quoted here as saying that he does not think the trade tariffs that the Trump administration imposed on China worked because the US has continued to experience record trade deficits.
scmp.com/economy/china-…
2/4
He’s right: they don’t work. Tariffs might work in a world in which trade imbalances are driven by differential production costs or manufacturing advantages. In a world in which trade imbalances are driven primarily by savings and income imbalances, however, all they...
He’s right: they don’t work. Tariffs might work in a world in which trade imbalances are driven by differential production costs or manufacturing advantages. In a world in which trade imbalances are driven primarily by savings and income imbalances, however, all they...
3/4
can do is divert trade, raise costs, and shift a country’s bilateral imbalances without changing its overall imbalances.
We must either engineer a new kind of trade agreement among countries that explicitly deals with these savings and income balances, or prevent...
can do is divert trade, raise costs, and shift a country’s bilateral imbalances without changing its overall imbalances.
We must either engineer a new kind of trade agreement among countries that explicitly deals with these savings and income balances, or prevent...
4/4
their transmission by limiting capital movement. We've experimented for decades with tariffs, quotas and purchase commitments – always keeping capital mobility sacrosanct – and have done almost nothing during all this time to change global trade imbalances.
their transmission by limiting capital movement. We've experimented for decades with tariffs, quotas and purchase commitments – always keeping capital mobility sacrosanct – and have done almost nothing during all this time to change global trade imbalances.
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