It is known that in a two-country, two-good world, the Nash equilibrium of a 'tariff war' of Harry Johnson (1953-4) tends to fail Pareto Optimality. With a demonstration by example, this note shows that it is possible that the attempt for trade liberalization through the removal of tariffs may...

Purpose − This study explains a puzzle: most countries realize the mutual benefit of tariff cutting, but tariffs never become zero. Approach − The method is decision-theoretic, and proves the results by example. Findings − The Johnson tariff-ridden equilibrium may be unique, but not the...

We document asymmetric networks of implied volatility spillovers across global stock and commodity markets as well as the US Treasury market. There are significant asymmetries in the roles of US stock and bond markets as volatility suppliers to other countries and markets. Shocks from the US...