Format:
1 Online-Ressource (circa 55 Seiten)
,
Illustrationen
ISBN:
9781484306116
Series Statement:
IMF working paper WP/17, 151
Content:
We study the robustness of the Lerner symmetry result in an open economy New Keynesian model with price rigidities. While the Lerner symmetry result of no real effects of a combined import tariff and export subsidy holds up approximately for a number of alternative assumptions, we obtain quantitatively important long-term deviations under complete international asset markets. Direct pass-through of tariffs and subsidies to prices and slow exchange rate adjustment can also generate significant short-term deviations from Lerner. Finally, we quantify the macroeconomic costs of a trade war and find that they can be substantial, with permanently lower income and trade volumes. However, a fully symmetric retaliation to a unilaterally imposed border adjustment tax can prevent any real or nominal effects
Additional Edition:
Erscheint auch als Druck-Ausgabe Lindé, Jesper The Macroeconomic Effects of Trade Tariffs: Revisiting the Lerner Symmetry Result Washington, D.C. : International Monetary Fund, 2017 ISBN 9781484306116
Language:
English
Keywords:
Arbeitspapier
;
Graue Literatur
DOI:
10.5089/9781484306116.001
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