Breitbart Business Digest: Tariffs as a Macro Economic Management Tool

Trade Policy Is the New Monetary Policy

The new San Francisco Fed paper on tariffs that we’ve been discussing this week opens the door for using customs duties in a way that the economics profession has almost never considered: as a macroeconomic policy tool.

Over 150 years of history in the U.S., U.K., and France, Régis Barnichon and Aayush Singh find that a tariff hike raises unemployment and lowers inflation . In other words, tariffs work the way we think tax hikes and monetary policy work. Which means we should start to think of them as part of the toolkit for keeping the U.S. economy from going awry.

What’s more, it means we should rethink…

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