{"id":271152,"date":"2025-02-16T04:07:46","date_gmt":"2025-02-16T04:07:46","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/02\/16\/a-trade-war-interpreted-in-a-blanchard-is-lm-model\/"},"modified":"2025-06-25T17:09:21","modified_gmt":"2025-06-25T17:09:21","slug":"a-trade-war-interpreted-in-a-blanchard-is-lm-model","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/02\/16\/a-trade-war-interpreted-in-a-blanchard-is-lm-model\/","title":{"rendered":"A Trade War Interpreted in a Blanchard IS-LM Model"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div id=\"post-55662\">\n\t\t\t\t<!-- .entry-header --><\/p>\n<div class=\"entry-content\">\n<p>I was promised an all-out trade war by Trump, and all I got was a lousy 10% tariff on China, and promises of a concept of a plan for reciprocal tariffs. Well, maybe re-arranging my syllabus will still pay off, if Trump gets his act together for destroying the post-War liberal economic order. Notes for a Trade War (cf. Blanchard, <em>Macroeconomics<\/em>, latest edition).<\/p>\n<p><a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1.png\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-55663\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1.png\" alt=\"\" width=\"915\" height=\"1200\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1.png 915w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1-229x300.png 229w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1-781x1024.png 781w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1-768x1007.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar1-624x818.png 624w\" sizes=\"(max-width: 915px) 100vw, 915px\"\/><\/a> <a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2.png\"><img decoding=\"async\" class=\"alignnone size-full wp-image-55664\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2.png\" alt=\"\" width=\"962\" height=\"1200\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2.png 962w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2-241x300.png 241w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2-821x1024.png 821w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2-768x958.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar2-624x778.png 624w\" sizes=\"(max-width: 962px) 100vw, 962px\"\/><\/a> <a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3.png\"><img decoding=\"async\" class=\"alignnone size-full wp-image-55665\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3.png\" alt=\"\" width=\"949\" height=\"1200\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3.png 949w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3-237x300.png 237w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3-810x1024.png 810w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3-768x971.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar3-624x789.png 624w\" sizes=\"(max-width: 949px) 100vw, 949px\"\/><\/a> <a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4.png\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-55666\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4.png\" alt=\"\" width=\"1053\" height=\"1138\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4.png 1053w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4-278x300.png 278w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4-948x1024.png 948w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4-768x830.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/tradewar4-624x674.png 624w\" sizes=\"auto, (max-width: 1053px) 100vw, 1053px\"\/><\/a><\/p>\n<p>Speaking of being disappointed, I\u2019m still waiting for \u201cInfrastructure Week\u201d. By the way, did Covid disappear by Easter, 2020?<\/p>\n<p>Just a reminder what happened to manufacturing jobs last time around (<a href=\"https:\/\/econbrowser.com\/archives\/2020\/09\/guest-contribution-the-trade-war-has-cost-175000-manufacturing-jobs-and-counting\">Russ and Cox, 2020<\/a>).<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n<p><!-- .entry-content --><\/p>\n<footer class=\"entry-meta\">\n\t\t\tThis entry was posted on <a href=\"https:\/\/econbrowser.com\/archives\/2025\/02\/a-trade-war-interpreted-in-a-blanchard-is-lm-model\" title=\"7:34 pm\" rel=\"bookmark\"><time class=\"entry-date\" datetime=\"2025-02-15T19:34:58-08:00\">February 15, 2025<\/time><\/a><span class=\"by-author\"> by <span class=\"author vcard\"><a class=\"url fn n\" href=\"https:\/\/econbrowser.com\/archives\/author\/menzie_chinn\" title=\"View all posts by Menzie Chinn\" rel=\"author\">Menzie Chinn<\/a><\/span><\/span>.\t\t\t\t\t\t\t\t<\/footer>\n<p><!-- .entry-meta -->\n\t<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/econbrowser.com\/archives\/2025\/02\/a-trade-war-interpreted-in-a-blanchard-is-lm-model\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] I was promised an all-out trade war by Trump, and all I got was a lousy 10% tariff on China, and promises of a<\/p>\n","protected":false},"author":1,"featured_media":271153,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[155],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/271152"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=271152"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/271152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/271153"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=271152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=271152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=271152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}