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TRADE AND THE CRISIS: PROTECT OR RECOVER

ROB GREGORY

Strategy, Policy, and Review Department, International Monetary Fund, 700 19th Street, NW, Washington, D.C., 20431, USA

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CHRISTIAN HENN

Strategy, Policy, and Review Department, International Monetary Fund, 700 19th Street, NW, Washington, D.C., 20431, USA

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BRAD MCDONALD

Strategy, Policy, and Review Department, International Monetary Fund, 700 19th Street, NW, Washington, D.C., 20431, USA

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, and

MIKA SAITO

Strategy, Policy, and Review Department, International Monetary Fund, 700 19th Street, NW, Washington, D.C., 20431, USA

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https://doi.org/10.1142/S1793993310000111Cited by:5 (Source: Crossref)

Abstract

We show that new trade restrictions implemented since the onset of the global financial crisis have had — in the limited products targeted — a strong distortionary impact on trade. Their aggregate impact is modest, however, as most countries have resisted a widespread resort to protectionism. Looking ahead, sustained high unemployment, uneven growth, and an unwinding of government stimulus measures suggest that protectionist pressures may rise. Continuing and further enhancing monitoring of all protectionist measures will help, but the surest way to avoid such a downside scenario is to tighten multilateral trade commitments by completing the World Trade Organization (WTO) Doha Round.

Trade and the Crisis: Protect or Recover (SPN/10/07) by Rob Gregory, Christian Henn, Brad McDonald, and Mika Saito. © International Monetary Fund, 700 19th Street, NW, Washington, DC 20431, USA. The views expressed in this article belong solely to the authors. Nothing contained in this article should be reported as representing IMF policy or the views of the IMF.

Keywords:

JEL: F02, F13, F40

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TRADE AND THE CRISIS: PROTECT OR RECOVER

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