"Most analyses of the macroeconomic adjustment required to correct global imbalances ignore net exports of new varieties of goods and services and do not account for firms' entry in the product market. In this paper we revisit the macroeconomics of trade adjustment in the context of the classic...

Most analyses of the macroeconomic adjustment required to correct global imbalances ignore net exports of new varieties of goods and services and do not account for firms' entry in the product market. In this paper we revisit the macroeconomics of trade adjustment in the context of the classic...

We investigate the role of trade imbalances and fiscal policies in the rise of protectionism on the period 2009-2019. Bilateral as well as multilateral trade imbalances are robust (with various sets of fixed effects) predictors of protectionist attacks. The role of trade imbalances in the rise...