"Why are they wrong? Because their paradigm is the postwar neo-liberal (or whatever we're calling it now) world order, in which democracies and semi-democracies trade with each other in pursuit of shared prosperity, in which the only unsightly slopes on the otherwise level playing field of comparative advantage are tariffs, subsidies and gaming the exchange rate. The only way in which the state is supposed to intervene is by producing (and equitably disbursing) unlimited quantities of education/research spending; and by fine-tuning tax policy."
This is quite untrue. Allen's model (as well are critiques of Allen's model) are perfectly compatible with a world in which external trade is driven by mercantilism and imperialism. In fact, in his book Allen explicitly stresses the importance of imperialism in enlarging the domestic market, and market size is an important element of his model."
This is a blog about hillside pastures, fodder crops and the things (like cavalry warfare) that flow from them;
|What we're talking about when we talk about kersey.|
|By Dr. Mirko Junge - Own work, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=9964214|