International trade

Phil Armstrong Published online 10th April 2026. Updated 3rd May 2026. Modern Monetary Theory and International Trade: Developments on the Base Case for Analysis   Abstract  Modern Monetary Theory (MMT)’s …

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Marco Garofalo and Thomas Prayer The US administration raised US import tariffs in April, reigniting trade tensions. This sparked concerns about cheaper exports being diverted to other markets, potentially lowering global prices. Using detailed product-level data, we build a novel timely indicator to consistently track trade prices across countries. Chinese export prices have risen less … Continue reading Monitoring trade prices in the wake of trade tensions →

Rebecca Freeman, Richard Baldwin and Angelos Theodorakopoulos Supply chain disruptions are routinely blamed for things ranging from elevated inflation to shortages of medical equipment in the pandemic. But how should exposure to foreign supply chains be measured? Using a global input-output database, this post shows that the full exposure of US manufacturing to foreign suppliers … Continue reading Supply chain disruptions: shocks, links, and hidden exposure →

Luke Heath Milsom, Vladimír Pažitka, Isabelle Roland and Dariusz Wójcik Exports of financial services decline with geographical distance at a rate comparable to that for international trade in goods (eg, Portes and Rey (2005)). This is surprising since there are no transportation costs involved. The consensus is that distance is a proxy for information frictions. … Continue reading The gravity of cross-border syndication ties in financial services trade →