A macroeconomic analysis of import tariffs

Following the recent, and unprecedented, change in U.S. trade policy, e recent, and unprecedented, change in U.S. trade policy, Oleg Itskhoki analyses import tariffs from a macroeconomic perspective: What are optimal import tariffs set by a country that only cares about its own citizens but takes into account the effect of tariffs on relative prices, demand and the real value of its foreign assets and liabilities? Is it possible to close a trade deficit in the long run by imposing import tariffs? In his lecture, Oleg will give answers to these and other questions based on current research in trade and international macro-economics. His lecture is thus a direct reply to the much criticised analysis used by the Trump administration to motivate the size of its import tariff increases and their variation across countries (see the Council of Economic Advisors note here).

This lecture will be chaired by Juan Carluccio (Banque de France), followed by a discussion by Mathieu Parenti (PSE, INRAE) and a policy conversation animated by Tobias Broer (PSE, Université Paris 1 Panthéon-Sorbonne).

Oleg Itskhoki

Oleg Itskhoki was previously a Professor of Economics and International Affairs at Princeton University. He is a Fellow of the Econometric Society, an NBER research associate, a CEPR research affiliate, and an associate editor of the American Economic Review. His research interests are in macroeconomics and international economics, where he studies globalization and labor markets, and currencies, exchange rates and international relative prices, as well as other topics.

He holds a BA in economics from Moscow State University, an MA in economics from the New Economic School, and a PhD in economics from Harvard University. He is the 2022 John Bates Clark Medalist, a participant of the Review of Economic Studies Tour, a Sloan Research Fellow, a recipient of the Excellence Award in Global Economic Affairs from the Kiel Institute for the World Economy, and was on the IMF’s list of 25 influential economists under the age of 45.