More evidence on the effects of recent tariffs
Trump is giving economists something to write papers about: U.S. tariff rates in 2025 rose to levels not seen since the Great Depression, yet imports increased. To account for the missing trade collapse, we develop an open-economy New Keynesian model with tariff heterogeneity, inventories, and shocks to investment that capture the AI-driven boom. The model […] The post More evidence on the effects of recent tariffs appeared first on Marginal REVOLUTION. CommentsLike Ptolemy adding epicycles. ...
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Marginal Revolution (United States) | Aug 21, 2026
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