Archive for Trade

So Much Winning: Football and Trade

A certain football team drove the ball down to the other team’s 1-yard line, but failed to score on the first three attempts. So it was 4th and goal, on the other team’s 1, and the coach called a running play. The QB took the snap, handed it off, and the running back dove over […]

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AEI on Trade Deficits: The Stunning Conclusion

You have all waited with breath which is baited for the resolution. Last week I posted this AEI meme:     …and said I thought there was a basic flaw in it, but I didn’t have time to type it up then. (To repeat, I’m sure the economists at AEI know this nuance; my point […]

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AEI on Merchandise Trade Deficits

I follow Perry on Twitter and saw this:     So, standard disclaimers: Trump’s policies on trade are awful, and his framing of the issues when he speaks to the public is also terrible. His policies, other things equal, will make Americans poorer, and he conveys a very confused understanding of the topic. Having gotten […]

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One Cheer and One Criticism for Don Boudreaux on Trade Deficits

(Notice kids that I’m doing this on my personal blog; I’m not picking a public fight with Don. Also, if Don has anything to say in response, I will edit this post and paste his reaction into the body, below.) I think it’s fair to say that nobody has been hammering home the case for […]

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Free Traders Should Be More Careful When Defending Trade Deficits

In a recent WSJ piece, Robert Barro pushed back against Trump’s mercantilism by arguing: “Imports are things we want, whether consumer goods, raw materials or intermediate goods. Exports are the price we have to pay to get the imports. It would be great, in fact, if we could get more imports without having to pay […]

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Potpourri

==> The latest Contra Krugman tackles Modern Monetary Theory (MMT). ==> Wendy McElroy writes about privacy and the (modern) connection to cryptocurrencies. ==> A few people on Twitter were giving me a high-five for my old article on trade deficits and fiat currency. I re-read it and thought, “I agree. That *was* a good article.” […]

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Scott Sumner, Trade Deficits, and Dark Matter

Scott Sumner at EconLog pounced at the red meat I waved in front of him. (I had sent him Trump’s ludicrous tweet on trade wars.) One of Scott’s points was very interesting, and I want to make sure readers understand the claim. Specifically, Scott wrote, “4. Most people assume that the US runs a persistent […]

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Currency Devaluation, Export Advantage, and Commodity Prices

I am mostly doing this as a placeholder. I wrote this article for Mises back in late 2010. A lot of it is standard stuff, but I got into the step-by-step adjustment to a currency devaluation, showing the sense in which it would shower benefits on certain groups. I vaguely remember that it took me […]

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