In “Trade Deficits: These Times are Different”, Paul Krugman concludes:
But we are living in a world where, for the time being — and maybe for a long time to come, if secular stagnation theorists are right — mercantilism makes a fair bit of sense.
Oh my! PK must think that having a NP gives him a ‘license to kill”.
Fortunately, secular stagnation theorists seem to be wrong. Furthermore, appeals to liquidity traps is not convincing, As the charts show, World Trade Blues reflect a languishing global economy, i.e. weak global aggregate demand!