Benn Steil, Senior Fellow and Director of International Economics at CFR writes:
Paul Krugman routinely mocks Germany for wanting “everyone to run enormous trade surpluses at the same time.” As Martin Wolf has put it, this is impossible, as “the world cannot trade with Mars.”
What we find amazing is that Krugman does not see a similar problem with his latest call for the United States to run “a weak-dollar policy.” Against whom should the U.S. pursue a weak dollar?...
The U.S. pursuing a weak-dollar policy towards its G-7 partners, therefore, would appear deeply damaging and misguided...
In short, we suspect that Krugman’s call for a weak-dollar policy can only mean one thing: currency war with Mars.
