Trade Wars

Canada's Reaction to the Smoot-Hawley Tariff

Datos Bibliográficos

ID4903549
AutoresJudith A Mcdonald (Lehigh University), Anthony Patrick O''Brien, Anthony Patrick O'Brien, Anthony Patrick O’Brien (Lehigh University), Colleen M Callahan (Lehigh University)
Año1997
Volumen57
Número4
Páginas802-826
Fecha de publicación1997-12-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Journal of Economic History (JOURNAL)
Identificadores de la revistaISSN: 0022-0507 • E-ISSN: 1471-6372
EditorialCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0022050700019549
OpenAlexW2151677343
IdiomaEN
Citas recibidas13
Referencias citadas13

Strange as it seems, the infamous Smoot-Hawley Tariff might have had an expansionary effect on the U.S. economy. Basic macroeconomic principles indicate that the direct effect of a tariff increase is expansionary. This expansionary effect might be offset by retaliatory increases in foreign tariffs. Barry Eichengreen has recently questioned whether significant retaliation to Smoot-Hawley occurred. This article demonstrates that the tariff increases enacted during 1930 in Canada-the largest trading partner of the United States-were in direct response to Smoot-Hawley. The conventional wisdom that Smoot-Hawley hurt the U.S. economy may be right after all

Economics · International economics · International trade · Monetary economics · Offset (computer science) · Tariff · Economics of Agriculture and Food Markets · Monetary Policy and Economic Impact