Oh, and regarding Mr. Bernanke’s part in this complex story: Some emerging markets are continuing to insist on overvaluing their currencies, and have put policies in place to keep them overvalued.
I don’t think it’s reasonable to demand that the Federal Reserve stop fighting unemployment in the United States in order to keep Chinese currency manipulation from leading to cotton hoarding by Chinese farmers.
© 2011 The New York Times Company
Truthout has licensed this content. It may not be reproduced by any other source and is not covered by our Creative Commons license.
Paul Krugman joined The New York Times in 1999 as a columnist on the Op-Ed page and continues as a professor of economics and international affairs at Princeton University. He was awarded the Nobel in economic science in 2008.
Mr Krugman is the author or editor of 20 books and more than 200 papers in professional journals and edited volumes, including “The Return of Depression Economics” (2008) and “The Conscience of a Liberal” (2007).
Copyright 2011 The New York Times.