Moreover, as is well known, over the long run, trade protection lowers a nation’s standard of living. Finally, suppose politicians actually do correct budget deficits, again assuming an economy near its medium-term growth path.
As mentioned above, such a fiscal austerity policy is the only known way to  10  This view is given in Michael Dooley, David Folkerts-Landau, and Peter Garber, “An Essay on the Revived Bretton Woods System”, NBER Working Paper 9971 (National Bureau of Economic Research, September 2003).