At the past year’s Jackson Hole Economic Policy Symposium, hosted yearly by the Federal Reserve Bank of Kansas City, several statements were made by both Central Bankers and Economists (NYT, August 28, 2017).
Mario Draghi, head of the European Central Bank, referring to trade stated: “People are concerned whether openness is fair, whether it is safe and whether it is equitable”.
Alan Blinder, an economist at Princeton University, observed in his remarks that people generally accept job losses they attribute to technological change, but are angered by the ones they attribute to trade policies. Then he proceeded to state: “We economist think that David Ricardo got it mostly right 200 years ago, and a lot of people think he got it badly wrong”.
Nina Pavcnik, a professor of economics at Dartmouth College stated: “The backlash against globalization does not arise because people doubt trade’s overall benefits; the backlash reflects that trade make some individuals worse off”.
In this course you have learnt about several trade models, going back centuries, up to these days. You also may have given some thought to their impact on the evolution of society to these days.
In the XX century trade has been characterized by a push to free trade and consequent globalization, with the establishment of institutions like the WTO and several multilateral preferential or free trade agreements.
The XXI century has brought new trends: first the rejection of multilateral agreements and of political aggregations in favor of bilateral and sector-specific agreements. Then the advent of populist movements in a number of economically significant areas of the world has spun protectionism and anti-immigration feelings.
In your paper apply your critical thinking and take position. Outline your opinion on the issues debated above and substantiate your position with data, facts and events.
Finally, one word of warning!
The topic of this course being trade among countries and the latter being managed by government, which inexorably are affected by politics – do not at any time indulge in political considerations, either as a base or for the conclusive findings of your paper. Your analysis and conclusions should be driven only by economic considerations of trade theory and models, as you have studied, are presently witnessing or may imagine them.
The Format and Delivery Instructions:
You will prepare an 8-10 page paper.
The paper should be submitted as a Microsoft Word file – which you will have previously saved on your computer with your “lastname.firstname” as the title.