More on Trans-Pacific Partnership Models: Response to Petri and Plummer

I see that Peter Petri and Michael Plummer (PP) have responded to my blog post on their models projections for the TPP. In essence, they minimize the concern that the TPP or even trade deficits more generally can lead to a prolonged period of high unemployment or secular stagnation to use the currently fashionable term.

Dealing with the second issue first, they argue:

“While trade agreements include many provisions on exports and imports, they typically contain no provisions to affect savings...