This paper presents a theory of optimal multilateral trade agreements with public political shocks. Optimal multilateral agreements exhibit "forbearance'' – where one country withholds retaliation when its trading partner receives a shock. This provides a rationale for countries not acting on...

The institutions that have sustained global economic cooperation for the past 75 years are under threat. Despite admonitions that global peace and prosperity are at risk, policymakers in important countries are ignoring the rules of the multilateral order and moving down the path of...

The institutions that have sustained global economic cooperation for the past 75 years are under threat. Despite admonitions that global peace and prosperity are at risk, policymakers in important countries have ignored the rules of the multilateral order and moved down the path of unilateralism...