Paul Krugman

Paul Krugman @paulkrugman

Maybe useful to talk about the "New Trade Theory" I and others developed in the early 80s. There had long been a sort of counterculture in the analysis of international trade, a sense that Ricardo and Heckscher-Ohlin weren't the whole story 8/ — PolitiTweet.org

Paul Krugman @paulkrugman

It took clever little models of trade with increasing returns and imperfect competition to cut through the fog, to understand key points like the nature of the home market effect, why similar countries trade so much, the role of accident in shaping trade patterns, and more 10/ — PolitiTweet.org