Reply to post: Re: About Time

British Prime Minister Boris Johnson moves to shut Parliament


Re: About Time

We are a net importer of electricity.

So, when our exchange rate goes down (or effective rate, which is all tariffs are) then yes electricity price will go up.

This is hardly news.

But guess what, we aren’t a net importer of all commodities. We do export some things. Whether you value them or not, someone else does and is prepared to pay for them. And exporters benefit when exchange rates fall.

Netted out, Efficient Market Hypothesis says that in “zero sum” terms we neither gain nor lose overall. The important effect of tariffs is second order, as both sides lose a good that they would trade if the tariff wasn’t there. And both sides lose the same.

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