infinite future. In this paper I analyze the setting of tariffs in a two-country model taking account of adjustment processes … induces policy makers with a short planning horizon to set lower tariffs because it enhances the short run boom following a … cut in tariffs. Monetary policy that aggressively fights deviations from its inflation target leads to even lower tariffs. …

Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and …

What is the optimal monetary policy response to tariffs? This paper explores this question within an open-economy New … direct effects of tariffs. This result holds regardless of whether tariffs apply to consumption goods or intermediate inputs …, whether the shock is temporary or permanent, and whether tariffs address other distortions …

. Our theory produces additional predictions that are also confirmed in the data. As such changes are structural rather than …