https://twitter.com/GroupofThirty/status/1534916824659333120

11:14 AM · Jun 9, 2022·Twitter Web App

#G30 member @RaghuramRRajan discusses the downsides of "friend-shoring" trade mandates stating that, if applied too broadly, "they would have devastating effects on international trade."-

Just Say No to “Friend-Shoring”

project-syndicate.org/commentary/friend-shoring-higher-costs-and-more-conflict-without-resilience-by-raghuram-rajan-2022-06

June 3, 2022

Tayfun Coskun/Anadolu Agency via Getty Images

Jun 3, 2022 Raghuram G. Rajan

Following major shocks to global supply chains in recent years, it is not surprising that governments are groping for new policies to build more resilience and ensure a continuous supply of critical inputs. But abandoning free and fair trade is not the answer.

CHICAGO – In an important speech to the Atlantic Council in April, US Secretary of the Treasury Janet Yellen issued a welcome call for revitalizing the world economic order. But she also generated headlines with a single sentence advocating what she called “friend-shoring”: that is, limiting the trade of key inputs to trusted countries in order to reduce risks to the supply chains on which the United States and its partners rely.

The Supply Solution to Stagflation Economics

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