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This paper analyzes the economic consequences of the Iron Curtain during the Cold War, quantifying trade barriers and welfare effects between the Eastern and Western blocs. It finds that the Iron Curtain imposed significant trade restrictions, equivalent to a 48% tariff at its peak, which halved trade flows and caused substantial welfare losses in Eastern bloc countries. The study highlights the importance of understanding historical trade barriers to anticipate the implications of current geopolitical frag

Author

ankinga23

Language

EN