During the 1970s the world economy suffered two price shocks. From 1972 through 1974 the prices of primary commodities—in particular grains and petroleum—rose to unprecedented levels in world markets. After 1974 many of these prices fell, but again in 1979 world oil prices doubled and the prices of other basic commodities increased rapidly. What were the causes and consequences of these large price fluctuations? Were they the main reason for the worsening of inflation during the 1970s? And what can be done to restrain their influence on inflation in the future?

Commodity Prices and the New Inflation

Business & Money

Lawrence, Robert Z.

Bosworth, Barry P.

Economics

Brookings Institution Press

Globaphobia: Confronting Fears about Open Trade

For much of the post-World War II period, the increasing globalization of the U.S. economy was welcomed by policymakers and by the American people. We gained the benefits of cheaper and, in some cases, better foreign-made products, while U.S. firms gained wider access to foreign markets. The increasing economic interlinkages with the rest of the world helped promote capitalism and democracy around the globe. Indeed, we helped "win" the Cold War by trading and investing with the rest of the world, in the process demonstrating to all concerned the virtues of trade and markets. In recent years, however, a growing chorus of complaints has been lodged against globalization--which is blamed for costing American workers their jobs and lowering their wages. The authors of this book speak directly and simply to these concerns, demonstrating with easy prose and illustrations why the "globaphobes" are wrong. Globalization has not cost the United States jobs. Nor has it played any more than a small part in the disappointing trends in wages of many American workers. The challenge for all Americans is to embrace globalization and all of the benefits it brings, while adopting targeted policies to ease the very real pain of those few Americans whom globalization may harm. Globaphobia outlines a novel, yet sensible program for advancing this objective. Copublished with the Twentieth Century Fund and the Progressive Policy Institute

Litan, Robert E.

Burtless, Gary

Reference

An examination of the performance of U.S. manufacturing in historical and global perspective indicates that, contrary to recent fears, international trade competition has not induced the deindustrialization of America. During the 1970s the U.S. manufacturing sector fared relatively well compared to its counterparts in other industrual countries and its own post-war track record. Most of its problems in the early 1980s are linked to domestic recession and the strong U.S. dollar.  A number of implicit assumptions in the current discussion about U.S. industrial performance are shown in this book to be inappropriate—changes in international trade are not the major reason for the declining share of manufacturing in U.S. employment: even though foreign productive capabilities are catching up with those of the United States, the U.S. comparative advantage in high-technology products has increased. The author looks at these and other issues and seeks to clarify some common misperceptions about U.S. manufacturing. He examines long-term trends and changes since 1973 in U.S. manufacturing—employment, capital formation, research and development expenditures, and output. He looks closely at manufacturing trade flows and their major determinants and at the role of trade in the U.S. manufacturing sector. The last part of the book addresses policy options for the United States, including laissez-faire, matching foreign subsidies, and new industrial policies. Changes in U.S. policies are suggested that might facilitate efficient structural trade adjustment, improve trade policy, and compensate for market failures.

Can America Compete?

Management & Leadership

The Brookings Institution

Saving Free Trade: A Pragmatic Approach

American Supporters of free trade are on the defensive. Record U.S. trade deficits are fueling demands from industry, Congress, and the public for tariffs, import quotas, and other protectionist measures that could reverse Americas long-standing commitment to open markets and sacrifice much of the economic progress experienced in recent years. In Saving Free Trade: A Pragmatic Approach, Robert Z. Lawrence and Robert E. Litan analyze both the allure of protectionism and the problems associated with free trade, proposing reasonable, cost-effective ways of helping industries, workers, and communities battered by intense import competition. The book focuses on the escape clause of the U.S. Trade Act of 1974, meant to provide domestic industries temporary shelter from severe import competition, and the trade adjustment assistance program, designed to provide direct aid to companies, workers, and communities injured by imports. The authors analyze the assumptions and implication of the many current congressional attempts to amend the provisions of the escape clause and the assistance program. They then set forth their own proposals, including new definitions of import injuries, modifications of provisions for providing relief for beleaguered companies, new standards for compensating and retaining displaced workers, and a plan for insuring communities against severe losses to their tax bases if local industries fail because they can no longer compete. Saving Free Trade provides a detailed but nontechnical introduction to the complex implications of amending trade policy and shrewd, innovative proposals for improving Americas ability to adapt to rapid changes in world markets.

Brookings Inst Pr

Over the past decade, international economic liberalization has been pursued through both multilateral and regional arrangements. In the Uruguay Round, more than one hundred governments pledged their commitment to greater open trade in goods and services, and established new rules under the enforcement of the World Trade Organization. At the same time, however, many regional arrangements have been negotiated--including the European Union and the North American Free Trade Agreement. Nonetheless, controversy still rages about these arrangements. Are regional arrangements stumbling blocks or, in fact building blocks for a more integrated and successful international economy? In this book, Robert A. Lawrence addresses this question and explains both sides of the debate.
A volume of Brookings' Integrating National Economies Series

Regionalism, Multilateralism, and Deeper Integration (Integrating National Economies : Promise and Pitfalls Series)

Regionalism, Multilateralism, and Deeper Integration (Integrating National Economies: Promise & Pitfalls)

In this capstone volume in the INE series, the authors review the growing pressure for deeper international integration, explore the strengths and weaknesses of alternative approaches to dealing with these pressures, and present concrete proposals to help achieve a global community that will balance openness, diversity, and cohesion. A volume of Brookings' Integrating National Economies Series

A Vision for the World Economy: Openness, Diversity, and Cohesion (Integrating National Economies: Promise & Pitfalls)

Ito, Takatoshi

Bressand, Albert

In this capstone volume in the INE series, the authors review the growing pressure for deeper international integration, explore the strengths and weaknesses of alternative approaches to dealing with these pressures, and present concrete proposals to help achieve a global community that will balance openness, diversity, and cohesion. A volume of Brookings' Integrating National Economies Series

A Vision for the World Economy: Openness, Diversity, and Cohesion (Integrating National Economies)

The world economy has undergone miraculous changes in the last decade, particularly in developing and former communist countries. Privatization and trade liberalization have replaced the protectionist and statist policies that were deeply entrenched in these areas just ten years ago. Today, these dynamic emerging markets offer attractive opportunities. According to Robert Lawrence, liberal international trade and investment should provide significant opportunities for gains in developing and developed nations alike.
 But will the developed countries be allowed to keep their markets open and absorb exports from developing countries? Many in the U.S. and Europe blame international trade for unemployment and wage inequality. But what is the real relationship? Lawrence contends that while trade has played some role in reducing the wages of poorly educated workers in the U.S. and in raising the unemployment of unskilled workers in Europe, its impact has been small compared with other causes of these changes.
 Lawrence examines the role of trade in developed and developing countries and its impact on labor markets and wage inequality, and discusses what he considers the more important effects of technological and organizational change. He begins by focusing on U.S. wage behavior, then moves to wage behavior in the OECD countries.
 Lawrence concludes that the impact of globalization on OECD labor markets has been far less damaging than many have argued and, indeed, that international trade enhances national welfare. He presents considerable evidence that the sources of poor labor market performance are essentially domestic—they reflect ongoing technological and organizational shocks that would be present even if the economy was closed. This evidence suggests that international differences in wage rates and labor standards are not major factors in OECD labor market behavior. He explains that the major challenges to policy are educating the public on the nature of these changes, emphasizing the need for worker training and education to take advantage of new technologies and new organizational structures, and developing measures to reduce earnings inequality while preserving and increasing wage flexibility.
 Robert Z. Lawrence is professor of international trade and investment at the John F. Kennedy School of Government at Harvard University. His previous books include A Vision for the World Economy: Openness, Diversity, and Cohesion (Brookings, 1996), the capstone volume to the Integrating National Economies series.
 Copublished with the OECD Development Centre

Single World, Divided Nations?: International Trade and the OECD Labor Markets

See the best price to sell, buy, or rent books by Lawrence, Robert Z.. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

Books by Lawrence, Robert Z.

See the best price to sell, buy, or rent books by Lawrence, Robert Z.. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

Commodity Prices and the New Inflation

Globaphobia: Confronting Fears about Open Trade

Globaphobia: Confronting Fears about Open Trade

Can America Compete?

Saving Free Trade: A Pragmatic Approach

Regionalism, Multilateralism, and Deeper Integration (Integrating National Economies : Promise and Pitfalls Series)

Regionalism, Multilateralism, and Deeper Integration (Integrating National Economies: Promise & Pitfalls)

A Vision for the World Economy: Openness, Diversity, and Cohesion (Integrating National Economies: Promise & Pitfalls)

A Vision for the World Economy: Openness, Diversity, and Cohesion (Integrating National Economies)

Single World, Divided Nations?: International Trade and the OECD Labor Markets