Template-Type: ReDIF-Article 1.0

Author-Name: Eszter Szabo
Author-Workplace-Name: Magyar Nemzeti Bank, Corvinus University of Budapest
Author-Email: szaboes@mnb.hu
Author-Person: 

Author-Name: Eliza Sule
Author-Workplace-Name: Magyar Nemzeti Bank, John von Neumann University
Author-Email: sulee@mnb.hu
Author-Person:

Title: The Power of Trade - Protectionism and Liberalisation over the Past 400 Years

Abstract: Foreign trade, including various tariff measures and their impact on individual
economies and the global economy, has been a topic of great interest in every era,
including the present. This paper reviews key tariff and trade policy measures from
the past 400 years. We consider it essential to emphasise that our paper takes an
economic history approach and is not intended to evaluate current or future customs
measures. In recent centuries, cycles of liberalisation and protectionism have
alternated in international trade. Throughout history, tariffs and other restrictions
have served to protect domestic sectors from foreign competition or to acquire and
strengthen economic power, while increasing state revenues has also been among
the objectives. Protectionist measures were typically accompanied by price increases
even in the short term, although they also stimulated domestic production growth.
However, in addition to the macroeconomic effects, the international political and
social consequences of trade policy instruments should also be considered.

Classification-JEL:
Keywords:
Pages: 153-167
Volume: 24
Issue: 2
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-2-fa1-szabo-sule.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:2:p:153-167