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Paul Krugman | |
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| Born | February 28, 1953 Albany, New York, United States |
| Field of study | Economics |
Paul Robin Krugman (born February 28, 1953) is a Statesian economist. In 2023, he wrote two articles opposing dedollarization in the New York Times, which Ben Norton and Michael Hudson of Geopolitical Economy Report have debunked.
Rebuttal to New York Times articles
"International Money Madness Strikes Again"
In his first article, published in April 2023, Krugman called de-dollarization supporters Weimarists and claimed that they assumed the decline of the dollar would cause hyperinflation in the United States. He also pointed out that the UK remained a major economy after the fall of the British pound.[1]
In reality, hyperinflation occurred in the Weimar Republic because Germany was required to pay its debts in foreign currencies. The USA and other countries created tariffs and trade barriers to prevent Germany from earning enough money to pay its debt, so Germany attempted to print Reichsmarks to pay its debts. The United States will not face similar inflation because its debts are in its own currency.[2]
Krugman listed three advantages for the U.S. dollar: first, most countries already use it; second, U.S. financial markets are open and not regulated like in China; third, the so-called rule of law.[1] The last concept is completely false because the USA supports dictatorships around the world.[2]
"What's Driving Dollar Doomsaying"
Krugman published a second article in May blaming Putin and cryptocurrency for dedollarization. He said that dollar dominance is worth less than 1% of the U.S. GDP.[1] If the dollar was so unimportant, then the United States would not have gone to war with Libya for trying to develop a new African currency or threatened Russia and China for using their own currencies.[2]
References
- ↑ 1.0 1.1 1.2 Paul Krugman (2023-04-14). "Wonking Out: International Money Madness Strikes Again" The New York Times. Archived from the original on 2023-05-10.
- ↑ 2.0 2.1 2.2 Ben Norton, Michael Hudson (2023-05-10). "NY Times is wrong on dedollarization: Economist Michael Hudson debunks Paul Krugman’s dollar defense" Geopolitical Economy Report. Archived from the original on 2023-05-10.