Peterson Institute for International Economics

1 week ago | piie.com | J. Jensen |Scott J. Wallsten

President Donald Trump’s on-again, off-again tariffs have shocked bond and stock markets, clouded economic forecasts, and sent analysts scrambling to explain the impact on prices and supply chains. Yet the effects of tariffs on innovation have received far less attention. Because innovation drives productivity, and productivity drives economic growth, the effects on innovation are significant. Tariffs fracture the global economy, effectively shrinking markets.

3 weeks ago | piie.com

President Donald Trump rolled out a new Executive Order Wednesday imposing tariffs of 10 percent or higher on all US trading partners. Here is a sample of PIIE experts’ initial reactions, lightly edited for space and clarity.

3 weeks ago | piie.com

3 weeks ago | piie.com | Olivier Blanchard |Adam Posen |Lawrence Summers

Olivier Blanchard and Lawrence H. Summers, two of the world's most insightful policy macroeconomists, hold a deep discussion of the US and global implications of the Trump administration's economic strategy. They assess how these new measures will reshape the global landscape with potentially lasting effects on the role of the dollar, inflation, monetary policy, financial stability, and long-term growth trends. PIIE president Adam S. Posen moderates a discussion and Q&A session that follows.

1 month ago | piie.com

America could narrow its merchandise trade deficit with EU countries by imposing tariffs on them, but at a cost of higher inflation and lower GDP than otherwise for the US and nearly all the other EU economies. The measures, however, would have little impact on the global US trade deficit, according to our new analysis.