…there are no net impacts on the trade balance; and (2) fiscal stimulus completely crowds-out net exports if capital mobility is perfect. So how do Erceg, Guerrieri, and Gust arrive…

…already swung back from unregulated capital flows and towards the use of capital control measures as part of macroprudential policies designed to address systemic risk in the financial sector. In…

…that links more trade to growth and other economic benefits. Economic theory implies only that, under most circumstances, lower trade barriers will lead to more trade and more jobs. The…

…after-tax return on capital investment, and this is expected to draw in capital from abroad. These flows increase the U.S. capital account — basically, investments from outside the country —…

Trade was a significant factor in the weak GDP report today and as usual when this happens you see many comments that do not understand why imports are a negative…

…trade pacts will accelerate If the World Trade Organization is undermined by the Trump administration. Whether or not regional trade agreements are the source of trade creation or diversion is…

…trend. The trade balance is the difference between two very large numbers so that small changes in either series can generate very large changes in the trade balance. The June…

The US-Mexico Trade Deal Dies Nobody is calling it that, but the low key story on the back pages of Wednessday’s major papers report that this is what has happened,…

…implemented by the Trump administration aren’t sustainable long-term. “We started with very high reciprocal rate tariffs, but after trade deals, trade talks, and trade negotiations, they have actually come down,”…

…end up poorer than it would have been if there had never been a trade war in the first place. But Trump decided to start a trade war, and now…