Recent Posts
(Note: Page numbers referenced in posts prior to June 1, 2011 refer to 5th edition)
March 30
Should the United States depend on foreign suppliers for vital resources?
Allen Sanderson provides a humorous view of protectionists.
Textbook References:
Pages 58-59 “Should the United States Trade with Other Countries?”Pages 188-194 “The Arguments for Restricting Trade”
February 18
Reinhardt on Trade
Uwe Reinhardt discusses the value of free trade, and presents a concern about it from Alan Blinder.
Textbook References:
Chapter 3 “Interdependence and the Gains from Trad ”Pages 180-188 “The Winners and Losers from Trade”
December 26
Smoot-Hawley Revisited
Scott Sumner argues that the Smoot-Hawley tariffs of 1930 crushed an incipient recovery and may have been a main reason for the Great Depression's severity.
Textbook References:
Page 183-185 “The Effects of a Tariff”
Pages 765-766 “Two Big Shifts in Aggregate Demand: The Great Depression and World War II”
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”