So is the world worse off with trade intervention? Yes, of course it is, but trade intervention starts with the policies of economies with large, persistent trade surpluses. It doesn't start with the subsequent responses of the deficit economies.
So is the world worse off with trade intervention? Yes, of course it is, but trade intervention starts with the policies of economies with large, persistent trade surpluses. It doesn't start with the subsequent responses of the deficit economies.
Because most households face budget constraints, the unsubsidized portion of these purchases will require reducing consumption spending elsewhere. At best this will boost total consumption by 0.1 percentage points of GDP, which is not enough to make much of a difference.
Because most households face budget constraints, the unsubsidized portion of these purchases will require reducing consumption spending elsewhere. At best this will boost total consumption by 0.1 percentage points of GDP, which is not enough to make much of a difference.
This is only possible as activity shifts from the private sector, where hard budget constraints limit economically unproductive activity, to the public sector and sectors supported by local governments, where there is no such constraint.
This is only possible as activity shifts from the private sector, where hard budget constraints limit economically unproductive activity, to the public sector and sectors supported by local governments, where there is no such constraint.