Published Journal of Political Economy Online 1 May 2025 Published Feb 2026Trade with Nominal Rigidities: Understanding the Unemployment and Welfare Effects of the China ShockAndrés Rodríguez-Clare · Mauricio Ulate · José P. VásquezStandard international trade models assume perfectly flexible prices and full employment. This paper introduces nominal rigidities (downward wage rigidity) into a quantitative trade model and asks how …