We study the global macroeconomic effects of tariffs using a multiregional, general equilibrium model, EAGLE, that we extend by introducing US tariffs against Chinese imports into the US, and subsequently Chinese tariffs against US imports into China, consistent with recent trade policies by the...

The authors stress how the rise of China and India has changed the world economy, moving it towards disequilibrium. Several alternative economic policies are tested to seek a way towards a high growth in any continent associated with long-run real and financial equilibrium