Caselli, Francesco, Koren, Miklós, Lisicky, Milan, Tenreyro, Silvana, (2015), “Macro diversification through trade”, Voxeu, 14 October
A widely held view in academic and policy circles is that openness to international trade and specialisation leads to higher GDP volatility. This column argues that openness to international trade can also lower a country’s GDP volatility by allowing it to diversify its sources of demand and supply, and hence reduce its exposure to domestic shocks.
Relevant Posts
- Gadatsch, N., Körner, T., Schnabel, I., Weigert, B., (2015), “Macroprudential supervision in the Eurozone: Beware of excessive expectations”, Voxeu, 3 June
- Blanchard, Ol. (2015), “Ten Takeaways from the ‘Rethinking Macro Policy. Progress or Confusion?”, Voxeu, 25 May