Set against the backdrop of Donald Trump’s presidency and the Brexit vote, Straight Talk on Trade, the latest book by Dani Rodrik, is an attempt to ‘set the record straight’ on trade—about how (mainstream) trade economists should have listened to their critics who warned about trade imbalances and job losses, instead of sticking to economic models that assumed away unemployment and other macroeconomic problems. By exaggerating the benefits of free trade and downplaying its distributional and other costs for fear of empowering the ‘protectionist barbarians’, trade economists fed technocrats and elites’ obsession with hyperglobalization. The same is the case in many other areas related to globalization like financial globalization, the euro zone, economic development strategies, etc. In all of these, he argues, mainstream economists overreached while transferring the context-specific idiosyncratic results of particular economic models into policy advices. He laments that constructing a more honest narrative about the world economy would have prepared ‘us’ for the eventual backlash.
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