I’ll be discussing this topic on Wednesday at the University of Wisconsin’s Union South (5:30), under the auspices of the Madison Committee on Foreign Relations.

I’ll start the discussion with this picture (effective as of today, for a few days at least):

Source: Yale Budget Lab, accessed 4/12/2025.

Post substitution rate takes into account quantity adjustment due to relative price changes associated with tariffs.

In general, I’ll refer to how the lessons in Chinn-Irwin International Economics (Cambridge) will differ (or not) from what was presented in earlier textbooks (excellent books, like Caves-Frankel-Jones, Krugman-Meltiz-Obstfeld, and Feenstra-Taylor).