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"Take out the baseball bat on Paul Krugman"
Friday, March 19, 2010
Economist Steven Roach of Morgan Stanley Asia has some not-so-kind words for economist Paul Krugman and his view that the Chinese currency should be allowed to strengthen considerably from its current level.
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Says Roach: "America doesn't have a China problem, it has a savings problem ... We should take out the baseball bat on Paul Krugman. I mean I think that the advice is completely wrong .... We’re lashing out at China rather than tending to our own business".
According to this report, Krugman replied, "I’m a little surprised at Steve for saying that. What I said is actually based on pretty careful economic analysis. We have a world economy which is depressed by China artificially keeping its currency undervalued."
5 comments:
Win a formerly prestigous prize and it all goes to your head. Hubris, thy name is Krugman.
^
...yeah, as opposed to overpaid I-bankers like Roach. They are the model of restraint and humulity - which is of course a reflection of that they never have hidden agendas.
Give me a break.
China just pegs the renminbi to the dollar. This is little different from Germany trading with Spain using the Euro, or Ohio trading with Michigan using the dollar. In all cases, the currency does not change, but remains pegged at a constant exchange value. I agree with Steve, the problem is the central bank printing too much.
The only people who think China's currency is NOT undervalued are those companies who have Exported Jobs to China, and are Importing goods from China.
Funny, how their self interest comes before the Nations good.
We're still discussing the merits of Mr. Roachs' statement.
I consider the matter closed and formally volunteer to club the fuzzy little Harp seal into submission!! I'll be happy to reclaim the medal for the Swedish central bank while I'm at it....I'm sure that after all the nonsense that Krugman has spouted since he won the "prize" they'll be glad to get it back. To end the embarrassment if nothing else!
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