Trade and Inequality: From Stolper-Samuelson to the China Shock
Trade and inequality have been debated since Stolper-Samuelson in 1941. The China shock literature gave the debate empirical teeth and...
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Our blog covers every aspect of the global economy, and we update our content regularly, so you can be informed about the most important topics.
Iceberg Trade Costs and the Distance Puzzle: Why Trade Frictions Still Shape Globalization
Iceberg trade costs explain why distance still matters for trade even in a globalized world. The distance puzzle remains unresolved...
Optimal Tariff Theory: When a Tariff Can Make a Large Country Better Off
Optimal tariff theory is the exception to the free-trade rule. A large country can raise its welfare by taxing imports,...
Trade in Tasks: The Grossman-Rossi-Hansberg Model of Offshoring
Trade in tasks reframes globalization. The Grossman-Rossi-Hansberg model shows why countries no longer trade finished goods but the tasks that...
Melitz Heterogeneous Firms Model: How Trade Reshapes Industries from the Inside
The Melitz heterogeneous firms model explains why only the most productive firms export and why trade reshapes industries by reallocating...
Real vs Nominal: Real Wages, Real GDP, and Real Interest Rates Explained
Real vs nominal is the most useful distinction in economics. This guide explains the difference once and applies it to...
What is Interest? Real, Nominal, and the Power of Compounding
What is interest? It is the price of money over time. This guide explains simple vs compound, nominal vs real,...
What is GDP? A Complete Beginner’s Guide to Gross Domestic Product
What is GDP? It is the most-watched number in economics, often misunderstood. This guide explains how it is measured, what...
What is a Recession? NBER Rules, Technical Recessions, and Modern Debates
What is a recession? The two-quarter GDP rule is a shortcut, not the official definition. This guide explains NBER methodology...
What is Money? A Beginner’s Guide to Functions, Forms, and History
What is money? At its core, money is anything widely accepted as payment. This guide explains its three functions, evolving...