Going against trade policy advice from his now former chief economic adviser, against pleas from members of his party including key leaders, and against objections from key US political allies, Trump went ahead to impose 25% tariffs on steel imports and 10% tariffs on aluminum imports, excluding temporarily only Canada and Mexico pending the outcome of NAFTA negotiations. This has left many scratching their heads. You do not 'win' Trade wars. So what exactly is Trump gambling
The last several months have seen interesting polices coming from both the GOP led legislative arm of government and the Trump Administration that should leave policy analysts, partisan affiliations aside, perplexed. The GOP in December of last year muscled through Tax Reform, a nod to their base of their desire to implement their economics of choice - supply side economics - which posits that a reduction in taxes and regulation on businesses would lead to a revitalized econo
In the wake of the Florida shooting and the resurgent debate on gun control, to focus our attention on solutions it may be helpful to see the problem through the lens of game theory in order to understand how to proceed from a policy point of view.
Game theory is an analytical tool that helps us to analyze and provide predictions in settings where behavior is decidedly strategic.
The analysis involves identifying the players, their strategy sets, characterizing the nature
One of the arguments in the trade debate has centered on the assumption that trade between the US and China for instance, has benefitted China a whole lot more than it has the US. As a result the argument is that by imposing these tariffs we create a more level playing field by limiting that benefit and in the process ensuring that US workers are protected. As I have stated in a recent blog post, trade is simply a mutually beneficial exchange among willing parties, the only d
International trade is always a contentious issue and one that is often not well understood. Some see the current structure as heavily biased toward particular multinational corporations and institutionalizing global inequality. Some others see it as a job destroyer in local communities and therefore something that cannot be good. People wonder, is the WTO a good thing? Is NAFTA good for the United States? What about for Mexican workers who have yet to see any significant wag