Thursday , July 29 2021
Home / Amol Agrawal: Mostly Economics / The ghost of Smoot-Hawley tells why America isn’t too big to avoid retaliation

The ghost of Smoot-Hawley tells why America isn’t too big to avoid retaliation

Summary:
Kris Mitchener, Kevin O’Rourke and Kirsten Wandschneider in this voxeu research: The Trump administration’s pursuit of protectionist trade policies was predicated to some extent on the belief that America was too lucrative a market to face retaliation. Using the most detailed data set of bilateral trade flows constructed to date for the interwar period, this column shows that in fact the US faced substantial and widespread retaliation from trade partners in response to protectionist measures employed in the wake of the Great Depression. Exports to retaliating countries fell by as much as 33%. ….. Peter Navarro was mistaken in 2018, and economic history suggests that this should have come as no surprise. Trade data suggest that the US faced widespread retaliation against Smoot-Hawley,

Topics:
Amol Agrawal considers the following as important: , ,

This could be interesting, too:

Amol Agrawal writes Let me work from home, or I will find another job

Amol Agrawal writes Fundamentals vs. policies: Can the US dollar’s dominance in global trade be dented?

Amol Agrawal writes U.S. Healthcare: A Story of Rising Market Power, Barriers to Entry, and Supply Constraints

Amol Agrawal writes Market Power and Monetary Policy Transmission

Kris Mitchener, Kevin O’Rourke and Kirsten Wandschneider in this voxeu research:

The Trump administration’s pursuit of protectionist trade policies was predicated to some extent on the belief that America was too lucrative a market to face retaliation. Using the most detailed data set of bilateral trade flows constructed to date for the interwar period, this column shows that in fact the US faced substantial and widespread retaliation from trade partners in response to protectionist measures employed in the wake of the Great Depression. Exports to retaliating countries fell by as much as 33%.

Amol Agrawal
I am currently pursuing my PhD in economics. I have work-ex of nearly 10 years with most of those years spent figuring economic research in Mumbai’s financial sector.

Leave a Reply

Your email address will not be published. Required fields are marked *