Attention Economy


Friday, April 22, 2016

Free Trade – A Reality Check

Princeton economist Alan Blinder’s timely WSJ op-ed – Five Big Truths about Trade
http://www.wsj.com/articles/five-big-truths-about-trade-1461280205
Bilateral trade imbalances are inevitable and mostly uninteresting. Each month I run a trade deficit with Public Service Electric & Gas. They sell me gas and electricity; I sell them nothing. But I run a bilateral trade surplus with Princeton University, to which I sell teaching services but from which I buy little. Should I seek balanced trade with PSE&G or Princeton? Of course not. Neither should countries.”