IMF: Tariffs and Industrial Subsidies ‘Largely Ineffective’ as Global Trade Imbalances Reverse Post-2008 Gains
The International Monetary Fund warned in a pointed new policy paper that tariffs and industrial subsidies are largely ineffective and damaging to economic welfare, as global trade progress since the 2008 financial crisis has reversed. The IMF says rebalancing requires coordinating domestic macroeconomic reform, not trade barriers, with widening imbalances driven by persistently large deficits in national saving in the United States and China’s ongoing real estate slowdown.
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