Explaining two trade busts: Output vs. trade costs in the Great Depression and today

Douglas L. Campbell, Christopher M. Meissner, Dennis Novy, David Jacks, 19 September 2009

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If the world economy is now in “purgatory,” as Paul Krugman recently suggested on a TV talk show, global trade has gone to hell and not yet returned. Between July of 2008 and February of 2009, nominal world trade plummeted by 42%.

Topics: Economic history, International trade
Tags: Great Depression, trade costs, trade slump

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