World trade: it’s not the 1930s

These differences in the policy environment and markets are a reason to be skeptical that the dramatic border protection of the 1930s will reappear. But that does not mean, of course, that governments will naturally adopt appropriate policies. There are still many other mistakes to be made (competitive subsidies and 'buy-local' policies in the name of…

Costs and benefits of trade

Market and PPP measures of GDP

You may be wondering why, if the MER basis is an inaccurate way to measure and compare output and growth, the World Bank (especially, but also the IMF and OECD in some publications) use it. The answer, as explained by the IMF staff, is that it is "too hard" (!) to estimate accurate PPP weights for……

A whiff of luddism

That word "rethink" is the disappointment in Rogoff's article: it's placard-waving and handwringing, not analysis. It's a doorway for 'dread' rather than prudence to enter public policy, bringing innovation to a halt in the name of 'precaution'.

Krugman’s take on protection

An attempt to scare people? I suppose he'd know.