What’s the problem with protectionism?

When the economy is in a liquidity trap, normal macroeconomic logic goes out the window, but this doesn’t make it good foreign policy

One thing is now certain about the upcoming presidential election in the United States: the next president will not be a committed free trader. The presumptive Democratic nominee, Hillary Clinton, is at best a lukewarm supporter of freer trade, and of the Trans-Pacific Partnership in particular. Her Republican counterpart, Donald Trump, is downright hostile to trade deals that would throw open US markets. Breaking with modern Republican tradition, Trump envisages a 35% tariff on imported cars and parts produced by Ford plants in Mexico and a 45% tariff on imports from China.

Economists are all but unanimous in arguing that the macroeconomic effects of Trump’s plan would be disastrous. Repudiation of free and open trade would devastate confidence and depress investment. Other countries would retaliate by imposing tariffs of their own, flattening US exports. The consequences would resemble those of the Smoot-Hawley tariff, enacted by the US Congress in 1930 and signed by an earlier, disgraced Republican president, Herbert Hoover – a measure that exacerbated the Great Depression.

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Can Wall Street be fixed? Ex-banker’s memoir examines a broken system

In his memoir For the Love Of Money, due out next week, Sam Polk suggests Wall Street would not be so bad if its workers were contributing to society

Can Wall Street be fixed? Sam Polk, a former investment banker who walked away from millions as a hedge fund investment manager, isn’t entirely sure.

Related: The golden age of investing is over: get used to Wall Street’s ‘new normal’

Cold liquid jealousy seeped into my stomach. If the year ended like this, Jeff would get paid more than me.

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Bank of England chief economist calls for big post-Brexit stimulus

Andy Haldane urges quick and decisive response to UK economic uncertainty including rate cut, more QE and cheap loans

The Bank of England’s chief economist has called for a big package of measures to support the UK’s post-Brexit economy, stressing the need for a prompt and robust response to the uncertainty.

Andy Haldane made it clear the Bank’s monetary policy committee would do more than merely cut interest rates from their already record low of 0.5% when it meets in August.

Related: Bank of England’s Haldane: we must unveil fresh stimulus in August – business live

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