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-slump macroeconomic cycles. During both crises, world trade collapsed faster than world incomes and the trade decline was highly … trade costs hitting international supply chains. So far, the global economy has avoided the global trade wars and banking … collapses of the Depression perhaps due to improved policy. Even so, the global economy remains susceptible to large shocks due …
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"We use a new measure of total trade costs at the bilateral country level to examine the change in international trade integration between 1870 and 1913. Trade costs are lowest amongst the most developed countries and highest in the peripheral and poor countries. On average, our measure declined...
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