1) Even after "It's back' and the 'baby sitting economy,' he does not give enough emphasis to monetary policy in keeping real income growing. He clearly understands FAIT, but does not defend and explain it.
2) Since his policy positions are in principle pretty plain vanilla, it is a shame that he does not try to make them rhetorically more palatable to to the Republican curious. He only preaches to the choir.
Great read as many of your other articles! Didn't PK also pioneer the literature on speculative foreign currency attacks, A model of balance-of-payments crises from 1979?
Yes, he did! Here I felt I lacked the knowledge to place to place it in context. I am only aware of Morris and Shin, but haven’t properly read it. So, I omitted it.
To be pedantic, I don't think Japan has a similar factor endowment to the US. I'm not sure how you would quantify this, but it is a much denser country with different education levels, different exports/imports, and much lower levels of natural resources and agriculture
My complaints against Krugman are two
1) Even after "It's back' and the 'baby sitting economy,' he does not give enough emphasis to monetary policy in keeping real income growing. He clearly understands FAIT, but does not defend and explain it.
2) Since his policy positions are in principle pretty plain vanilla, it is a shame that he does not try to make them rhetorically more palatable to to the Republican curious. He only preaches to the choir.
Great read as many of your other articles! Didn't PK also pioneer the literature on speculative foreign currency attacks, A model of balance-of-payments crises from 1979?
Yes, he did! Here I felt I lacked the knowledge to place to place it in context. I am only aware of Morris and Shin, but haven’t properly read it. So, I omitted it.
> He thinks that old-school theories of development were perhaps unfairly treated because we could model external economies of scale,
Sorry, is this supposed to be inverted?
Beautifully written summary... Thanks
To be pedantic, I don't think Japan has a similar factor endowment to the US. I'm not sure how you would quantify this, but it is a much denser country with different education levels, different exports/imports, and much lower levels of natural resources and agriculture