Trade Protection (Non-)Effects On Prices

A lot of economists—which unfortunately includes some post-Keynesians—exaggerate the effect of tariffs and quotes on prices. Marc Lavoie has a nice explanation of how these claims are inconsistent with cost-plus pricing in his book Post-Keynesian Economics: New Foundations. From pages 555–556, (second edition)/509–510 (first edition): 7.5.3 Trade Protection The New Cambridge support for tariffs…