We review theoretical and empirical work on the economic effects of the United States and China trade relations during … the last decades. We first discuss the origins of the China shock, its measurement, and present methods used to study its … economic effects on different outcomes. We then focus on the recent U.S.-China trade war. We discuss methods used to evaluate …

Inflation has risen sharply in many countries since the COVID-19 outbreak. Economists have debated the underlying … causes. In this paper, we examine the drivers of the global import price inflation, which peaked at approximately 11 percent …

This paper studies the evolution of China's production and trade patterns during its integration into the global … that capital deepening made China's production and exports more capital-intensive, although labor-biased productivity … growth acted as a counterforce. Consistent with the data, our model demonstrates that China's trade openness peaked around …

We study changes in markups across 72 product markets from 2006 to 2018. A growing literature has documented a rise in … markups over time using a production function approach; we instead employ the standard microeconomic method, which is to … estimate demand and then invert firms' first-order pricing conditions to infer their markups. To make the method scalable, we …

We empirically characterize episodes of large inflation surges that have been observed worldwide in the last three … decades. We document four facts. (1) Inflation following surges tends to be persistent, with the duration of disinflation … exceeding that of the initial inflation increase. (2) Surges are initially unexpected but followed by a gradual catch-up of …

This paper studies how a rise in China's share of U.S. imports could lower pass-through of exchange rates to U ….S. import prices. We develop a theoretical model with variable markups showing that the presence of exports from a country with … exporters from other countries to lower markups in response to a U.S. depreciation, thereby moderating the pass-through to …

differences in markups, costs, and import quota constraints. Local currency price stability can be attributed either to the … higher prices in Italy is the existence of a strong bias for domestic brands that generates high markups for the domestic …