A recent article in the International Economic Journal revisits a classic question in international economics: do trade restrictions actually improve a country’s welfare? Rather than relying on the traditional terms of trade (TOT) — the ratio of export prices to import prices — the study focuses on a more comprehensive indicator, the income terms ofContinue reading “Revisiting Trade Restrictions and Export Purchasing Power”
Tag Archives: purchasing power
Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power
The lowering purchasing power and the declining middle-income class have recently become rising economic issues in Indonesia. The lower purchasing power is concerning as, according to Statistics Indonesia (Badan Pusat Statistik, BPS) data, more than half of the Indonesian macroeconomic condition is attributed to household consumption, while the middle class has become the backbone ofContinue reading “Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power”
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