Thursday, October 28, 2010

Mea Culpa (Kinda Sorta)

. Thursday, October 28, 2010

Somehow I missed this from Brad DeLong when it was first posted:

Now I do not think that the United States should pressure China--much--to more rapidly appreciate the yuan. The United States ought to help China become richer as fast as possible--and allowing them to run an undervalued currency and a big export surplus for a while is a good way to do that. The United States, as the hegemon of the world economy, ought to be able to manage the level of its own and of global demand without pushing for demand-shifting policies. A little pressure on China to figure out how to shift more rapidly to internal demand-driven growth is good for them and good for us. But too much pressure--I don't think so.

This amounts to a fairly strong, if unattributed, rebuke of the Krugman view. Since I publicly doubted whether he'd do it, I suppose DeLong's partial denunciation deserves a partial apology from me. So there it is. I still wish he'd take Krugman on directly when he goes all neo-con on China, but this is a good step.


Mea Culpa (Kinda Sorta)
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