🌐 Global Economy Aug 11, 2026 · conversableeconomist

Rocks in the Harbor: Beveridge and Robinson

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For teachers of economics, one familiar metaphor about tariffs is “rocks in the harbor.” Companies and countries go to considerable trouble and expense to build docks and interconnected transportation structure, and even dredge the harbor to assure smooth transit for vessels. Having done all that, it would seem peculiarly illogical to then dump rocks into the harbor, raising the costs of trade and offsetting the previous investments.



The metaphor seems to have originated with Will

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