Abstract
Changes in the way economists perceive international trade have led to a greater variety of trade policy prescriptions, each given with muted confidence. A selective sample gives some hint of the diversity. Paul Krugman (1987: 132) puts the case for free trade: free trade is not passé, but it is an idea which has irretrievably lost its innocence. Its status has shifted from optimum to reasonable rule of thumb. There is still a case for free trade as a good policy, and as a useful target in the practical world of politics, but it can never again be asserted as the policy that economic theory tells us is always right.
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Pomery, J. (1991). The New Trade Theory:Implications for Policy Analysis. In: Weimer, D.L. (eds) Policy Analysis and Economics. Recent Economic Thought Series, vol 23. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3866-6_8
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DOI: https://doi.org/10.1007/978-94-011-3866-6_8
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