In Dicta

Tuesday, June 28, 2005

What's the matter with Krugman?

For an economist whom I used to admire, in fact, I have all of his pre-2000 books, Paul Krugman has certainly lost it, as best evidenced by this column.

"Fifteen years ago, when Japanese companies were busily buying up chunks of corporate America, I was one of those urging Americans not to panic. You might therefore expect me to offer similar soothing words now that the Chinese are doing the same thing. But the Chinese challenge - highlighted by the bids for Maytag and Unocal - looks a lot more serious than the Japanese challenge ever did.

...

If it were up to me, I'd block the Chinese bid for Unocal. (...)"

The economics and business blog Marginal Revolution has a fascinating commentary on this Krugman column.

But what is also interesting to note is that Krugman seems to be making the point that we should fear the Chinese more because they are savvy buyers, but the Japanese were not. Huh?

What's the matter with Krugman?

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