We pointed out earlier that Stephen Roach went on Bloomberg TV today with some strong words on Paul Krugman’s analysis of US-China relations.
“I think we should take out the baseball bat on Paul Krugman,” Roach said.
“I think the advice is completely wrong. The US has had a conscious policy here of maintaining, quote, a strong and stable dollar. China is saying basically the same thing in terms of its stable currency. Isn’t it the height of hypocrisy for America to articulate to articulate a particular position in its currency but the Chinese are not allowed to do that, especially since they as a developing economy – with an embryonic financial system – need a currency anchor probably a lot more than a sophisticated, quote unquote, economies like the United States.”
Here’s the video.