Article
How Free Trade Can Fight Inflation
More Competition Means Lower Prices
Foreign Affairs,
2022
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Recommendation
Inflation in the United States continues to run at a four-decade high in 2022. Energy costs, the Russian–Ukraine war and trillions of dollars circulating throughout the economy take much of the blame. But restrictive tariffs, set against a backdrop of protectionist trade policies, are an overlooked inflationary element. Economists Gary Hufbauer, Megan Hogan and Yilin Wang argue that slashing trade levies could reduce input costs for firms and thereby tamp down prices. Investors and executives will find this a timely and insightful assessment of US inflation.
Summary
About the Authors
Gary Hufbauer is a nonresident senior fellow at the Peterson Institute for International Economics, where Megan Hogan and Yilin Wang are research analysts.
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