Krugman: Steve Roach Has Gone Batty

paulkrugman explaining tbi

I really don’t understand Roach’s argument here; he seems to have subscribed to the Underpants Gnomes theory of trade balances:

1. Increase savings
2. ?????
3. Exports!

To be honest, sometimes I feel that I’ve spent most of my adult life knocking down the same misunderstanding, over and over again.

Keep reading Krugman’s reply to Roach >>

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