For inflation relief, the United States should look to trade liberalization - Lawrence Summers

March 30, 2022, Video: "In the face of 40-year high inflation, likely to rise further, the Peterson Institute for International Economics addresses how much trade liberalization could reduce it quickly. A new PIIE Policy Brief presents a feasible package of trade liberalization—no larger in total than the tariffs former President Trump imposed on China—that could deliver a one-time reduction in the consumer price index (CPI) of around 1.3 percent; if all the liberalization measures listed were undertaken, the reduction in CPI is projected to be 2.8 percent. Lawrence H. Summers, former US Treasury Secretary and PIIE Vice Chair of the Board, will make the general case for why this kind of additional counter-inflationary policy tool is needed in the current macroeconomic context of still loose monetary conditions and tight labor markets." Watch Via PIIE on Youtube

HKS Faculty Author - Lawrence Summers