3 ms·
There's no real formal definition of crisis, but being fair to him it's not yet a crisis. It is however a sharp devaluation, and appears to be the opposite of w
by darawk 4y ago
There's no real formal definition of crisis, but being fair to him it's not yet a crisis. It is however a sharp devaluation, and appears to be the opposite of what he was predicting.
- onlyrealcuzzo 4y agoI don't know how you got that. He's saying that a devaluation won't kill the country because the debt is denominated in Pounds. That seems like a strange clarification. If he's predicting the Pound wouldn't decline - he'd say that. Not say that if it does decline, it won't be a problem... That implies it's a possibility. It just won't cause a crisis if it happens.
- darawk 4y agoHe says it most clearly right here: https://twitter.com/paulkrugman/status/1573656086716071937 https://twitter.com/paulkrugman/status/1573656086716071937 "The moron risk premium has now been priced in". That is, he believes the currency depreciation is substantially over. He is also saying the thing you're reading him as saying too though.
- candybar 4y agoGBP/USD hasn't moved substantially in either direction since Krugman's tweets.