AIMarginal Revolutionabout 1 hour ago
More evidence on the effects of recent tariffs
1 min read
U.S. tariff rates in 2025 rose to levels unseen since the Great Depression, yet imports increased. A new open-economy New Keynesian model with tariff heterogeneity and inventories shows the AI-driven investment boom offset the trade collapse, preventing a 10 percent import decline.
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