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The U.S. economy is on the verge of experiencing the most dramatic tax cut since the 1986 tax reform. The tax reform bill has passed Congress and President Trump has signed it into law, most of which will take effect from the start of 2018. The tax reform will not just impact the domestic economy of the United States. In its current form, it would also have substantial consequences on the global economy. This short article discusses the international implications of the tax reform, focusing its analysis on Korea.

The U.S. mid-term election, held on November 6th, resulted in a divided Congress. The Republicans held on to secure the Senate while the Democrats took control of the House of Representatives. While the domestic issues surrounding Obamacare, women's rights and the appointment of a new Supreme Court nominee appear to have played important roles in shaping the election outcomes, other countries were more keen on evaluating the impact of the election on their economies and politics. More particularly, how the Trump administration's trade policy will unfold is of particular concern for many countries. This short article discusses possible turns of events regarding U.S. trade policy following the mid-term election and its implications for Korea.

Abstract
I construct a general equilibrium model with economies of scale and learning-by-doing in manufacturing to quantify the effects of tariff that the US imposed on its manufacturing imports from 1870 to 1913. I find that the tariff positively contributes to US manufacturing growth, but the magnitudes are small. I also show that the cumulative welfare effect of the tariff is positive if there exists enough degree of learning-by-doing, a result contrary to the conventional wisdom that tariffs have welfare-deteriorating effects. The welfare-enhancing effect of the tariff disappears when I use a similarly constructed model, but with constant returns to scale in manufacturing. The result suggests that the assumption about technology is important for the welfare implication of the tariff.

Abstract
This paper explores the structural change in the job matching process in the United States from 1923 to 1932. Bai–Perron test is employed with data from public employment offices. The result shows that there are two structural changes, July 1928 and August 1930. The first breakpoint corresponds to approximately a year before the stock market crash, implying that there was a sign of downturn in the labor market when the economy was still in a period of expansion. The second break point is related to the Great Contraction when the entire economy was going in a downward spiral.