Paul Krugman is an American economist who was in 2008 awarded the Nobel Memorial Prize in Economic Sciences for his contributions to New Trade Theory & New Economic Geography.
He had recently expressed a negative point of view on the demonetization of Indian currency. He said, “Unusual would be the word to describe it. Seems like a highly disruptive way to deal with the problem of illicit hordes of cash, though it is not clear what significant long term gains will come out of it.”
He even said that people would slowly find other ways to accumulate unaccounted wealth & that they would be more careful & sophisticated in laundering their money in the future.
— NDTV (@ndtv) December 3, 2016
Piyush Goyal’s Counter
Power Minister Piyush Goyal was talking at the HT Summit when he was asked to comment on Paul Krugman’s views. As he usually does, Piyush Goyal gave a point-by-point & fact-based rebuttal to Krugman & literally trashed his statements on demonetization.
He made the following points –
- Krugman has ‘missed the point’ far too often in the last decade.
- Krugman has been a critic of the Obama administration’s bailout in 2008 where Obama had funded the private sector & protected jobs. Krugman thought it had been ‘inadequate’ & that protecting private sector jobs wasn’t good. But the fact is that the move proved to be the right decision.
- Krugman had even missed the 2006 housing bubble, & Piyush Goyal had his team look up & it found that only 8 out of 100 of Krugman’s articles in 2006 even had a mention of the housing bubble.
- On the question of ‘when the US markets will recover after Trump’s victory’ Krugman’s reply had been ‘never’. Whereas the Dow Jones Industrial Average hit a new high the very next day.
- The best of Goyal’s quips was when he said, “I don’t think the Nobel Institution gives you a certificate that everything you say or do is right.”
He had shown the same boldness when David Letterman was interviewing him. On the topic of how India’s consumption of coal was rising rapidly & affecting the environment, Piyush Goyal had shown him pictures of buildings in the US near the White House in which all the lights were turned on even past midnight when nobody was inside working, & Letterman could simply nod along in acceptance to the hypocrisy of the developed countries.