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United States and China. The focus is laid on two trade war scenarios, and one of them takes into account the effects of the … solely due to the trade war with China, in 2020, the US total trade balance will improve by 41,020 million USD (0.21% of real … trade intensity with China and welfare will decline. However, our study has found that the potential economic consequences …
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Monetary policy entails demand augmenting and demand diverting effects, with its impact on the trade balance-and spillovers to other countries-depending on the relative magnitude of these opposing effects. Using US data, and a sign-restricted structural VAR identification strategy, we...
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