Of the four basic theorems of CRS trade theory, only the Stolper-Samuelson theorem has an application to the very short run. On impact, a small tariff increases the disposable real income of a representative portfolio if and only if the protected sector is more capital intensive than average....

Standard mortgage borrowing practices are incorporated into a model of the loanable funds market. Contrary to the Taylor rule (which is for short-term rates), in this model an increase in inflation causes the long-term nominal rate to rise by a smaller amount, leaving the real rate lower. In...

Without a little inflation, bad investment drives out good. Moderate inflation enhances productivity by functioning like a scarecrow: the rise in nominal mortgage rates deters myopic home buyers, who naively watch the nominal interest rate (in its guise as the payment-to-income ratio) rather...

If prejudice divides and weakens the working class, then capital owners can impose more inequality without fearing unified resistance. Frustrated workers turn on each other as scapegoats, blaming their economic hardship on diversity (in terms of race, religion, ethnicity, immigration status,...