Posted by: Dirk | October 23, 2009

Paul Krugman on China

When you present a paper in about a week, and then Paul Krugman writes his column in the NY Times on the same subject, this can be exciting. So, here is the main part:

Many economists, myself included, believe that China’s asset-buying spree helped inflate the housing bubble, setting the stage for the global financial crisis. But China’s insistence on keeping the yuan/dollar rate fixed, even when the dollar declines, may be doing even more harm now.

My co-author and I absolutely agree with that. This is exactly the topic of our talk. Here’s a link to our paper (first draft). Since we have recently updated our paper (second draft), the talk will also focus on possible exit strategies. If you really want to know, I see you in Berlin next week…

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