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I 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 clar

I 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 ago
He 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 ago
  GBP/USD hasn't moved substantially in either direction since Krugman's tweets.