Alessandro Barattieri, Matteo Cacciatore, Fabio Ghironi, 10 August 2018

Populist politicians argue that protectionism stimulates the domestic economy. This column uses data on temporary trade barriers from antidumping investigations to show that when small open economies have imposed protectionist measures, it has caused inflation to rise and real economic activity to fall. Empirical analysis and model-based exercises show that protectionism is costly even when used temporarily, even for economies stuck in liquidity traps, and regardless of the flexibility of the exchange rate.

Aksel Erbahar, Yuan Zi, 10 October 2016

With the US presidential debates, talk of trade protectionism is on the rise. This is worrisome for economists, who generally argue that protection hurts consumers by raising final good prices, particularly in a world with increasingly integrated global value chains. This column presents new evidence for ‘cascading protection’, showing that US protection of inputs has increased the probability of petitions for protection by their downstream users.

Roberta Piermartini, 26 July 2009

In times of economic difficulty, governments are often under pressure to adopt measures to restrict trade. This column says that contingency measures allowing trade policy flexibility can play an important role in maintaining a rule-based system of multilateral trade in such circumstances. But there is sufficient latitude for WTO-compliant protectionism that vigilant monitoring remains necessary.

Richard Newfarmer, Elisa Gamberoni, 04 March 2009

Trade protection is on the rise around the world and risks pushing the economy into prolonged contraction. Officials have proposed more than 60 new trade restrictions since the beginning of the financial crisis. While a serious outbreak of protectionism has yet to occur, vigilance and leadership are required.

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