01920cas a2200253 a 4500 AALejournalIMF017716 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484306116 1018-5941 BD-DhAAL BD-DhAAL Linde, Jesper. The Macroeconomic Effects of Trade Tariffs : Revisiting the Lerner Symmetry Result / Jesper Linde, Andrea Pescatori. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (54 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study the robustness of the Lerner symmetry result in an open economy New Keynesian model with price rigidities. While the Lerner symmetry result of no real effects of a combined import tariff and export subsidy holds up approximately for a number of alternative assumptions, we obtain quantitatively important long-term deviations under complete international asset markets. Direct pass-through of tariffs and subsidies to prices and slow exchange rate adjustment can also generate significant short-term deviations from Lerner. Finally, we quantify the macroeconomic costs of a trade war and find that they can be substantial, with permanently lower income and trade volumes. However, a fully symmetric retaliation to a unilaterally imposed border adjustment tax can prevent any real or nominal effects. Mode of access: Internet Pescatori, Andrea. IMF Working Papers; Working Paper ; No. 2017/151 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/151/001.2017.issue-151-en.xml IMF e-Library