Wednesday, August 28, 2013

The Asian Crisis Versus The Euro Crisis

by Paul Krugman

New York Times

August 28, 2013

So, I’m feeling young again — well, middle-aged, anyway. The rupiah is plunging again!

I was one of those economists for whom the Asian crisis of 1997-1998 came as a disturbing revelation, a demonstration that events all too reminiscent of the Great Depression could still happen in the modern world. Between the acute crises in Southeast Asia and the long stagnation in Japan, it was — or so I thought — all too clear that we did not, in fact, have this thing under control. Unfortunately, not enough people grasped that lesson, and a decade later we had a global crisis that made the Asian crisis look trivial by comparison.

But anyway, the moving finger of crisis seems for the moment to be pointing back at some of the old crowd. And I’m catching up on what’s been going on in that part of the world.


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