A Model of the Euro Area, China and the United States: Trade Links and Trade Wars
Volha Audzei and
Working Papers from Czech National Bank
In this paper we develop a dynamic stochastic general equilibrium model featuring the euro area, the United States and China, with an exogenous rest of the world. The countries in the model are linked through trade and international bond purchases. Having estimated the model, we study several scenarios of trade wars between the countries. Our findings suggest that no country benefits from imposing tariffs in the long run. The degree to which a particular country is hurt depends on the strength of its import and export links.
Keywords: Bayesian estimation; China; multi-country DSGE; trade wars (search for similar items in EconPapers)
JEL-codes: C11 E37 F13 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-eec, nep-int, nep-mac, nep-opm and nep-ore
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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2020/6
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