The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Macroeconomic Effects of International Trade

  • Reuven Glick
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2485

Abstract

International trade can affect the macroeconomy by helping to transmit disturbances from one economy to another and by muting or amplifying the impact of fiscal and monetary policies on economic activity. Representative open economy macro models are discussed, highlighting the role different theoretical features play in influencing the channels through which trade flows can have macro effects.

Keywords

Balassa–Samuelson effect Beggar-thy-neighbour Capital mobility Comparative advantage Consumption correlations puzzle Contagion Currency unions Elasticities approach to the balance of payments Elasticity of substitution Endogenous growth models Exchange rate puzzles Exchange rate regimes Externalities Feldstein–Horioka puzzle Flexible exchange rates General equilibrium Imperfect competition Income–expenditure models Income multiplier Inflation International real business cycles International trade Keynesian model Macroeconomic effects of international trade Marshall–Lerner–Robinson condition Microfoundations Monopolistic competition Mundell–Fleming model National income New openeconomy macroeconomics Production sharing Purchasing power parity Research and development Specialization Spillovers Technological progress Terms of trade Trade costs Trade frictions 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Reuven Glick
    • 1
  1. 1.