When Donald Trump launched his protectionist trade wars earlier this year, many predicted the worst. Protectionist trade wars may divert economic activity. “It’s … tempting to assume that because the Trumpist argument for trade wars is so stupid, Trump trade policies must be totally disastrous,” Krugman writes. However, trade wars alone should not send the world careering into recession. This is what economic theory predicts about Trump’s protectionist trade policies.

Source: thestar October 18, 2018 19:32 UTC