I'm not sure this proves Krugman is wrong. Sell-offs (especially large ones) don't indicate that hoarding hasn't taken place. In fact, if hoarding wasn't taki

I'm not sure this proves Krugman is wrong. Sell-offs (especially large ones) don't indicate that hoarding hasn't taken place. In fact, if hoarding wasn't taking place I'd expect low variability in trading volume (since the currency would be used by a number of parties for small transactions). A large sell-off implies to me that a large amount of value has just transferred from one set of hoarders (investors?) to another. Either that, or someone just made a huge donation to WikiLeaks...