November 8
Take Out Your Pencils
Mankiw presents an exam question wherein a monopolist in a closed economy reacts to the opening of its market.
Textbook References:
Page 179 “The World Price and Comparative Advantage”
Pages 186-188 “Other Benefits of International Trade”
Pages 315-322 “How Monopolies Make Production and Pricing Decisions”
Pages 322-326 “The Welfare Cost of Monopolies”
October 20
More Shots in the Trade War
China imposes a new tariff on nylon in a tit for tat trade war with the U.S.
Textbook References:
Page 8 “Principal 5: Trade Can Make Everyone Better Off”
Chapter 3 “Interdependence and the Gains from Trade”
Pages 183-185 “The Effects of a Tariff”
Pages 728-730 “Trade Policy”
Mar. 11
Turning Away the Best and the Brightest
The stimulus bill contains a clause making it harder for U.S. firms to hire skilled immigrants.
Textbook References:
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Mar. 4
Another Loss for Economic Freedom
The economic stimulus bill restricts the hiring of foreign workers.
Text References:
Page 8 “Principle 5: Trade Can Make Everyone Better Off”
Pages 8-10 “Principle 6: Markets Are Usually a Good Way to Organize Economic Activity”
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Feb. 16
China Favors Free Trade, Even if U.S. Doesn’t
China promises to avoid protectionism, even though the U.S. stimulus bill includes protectionist policies.
Textbook References:
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”
Feb. 10
Tit for Tat
Canadian unions join the chorus for economic nationalism.
Textbook References:
Page 8 “Principle 5: Trade Can Make Everyone Better Off”
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”
Feb. 5
Malkiel on “Buy American”
Burton Malkiel argues that the stimulus package should not include protectionist provisions.
Textbook References:
Page 8 “Principle 5: Trade Can Make Everyone Better Off”
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”