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Vadim Verenich
2012-06-08, 08:58
President Of Estonia Slams Paul Krugman: 'Smug, Overbearing & Patronizing'

The president of Estonia chewed out Paul Krugman on Wednesday, using Twitter to call the Nobel Prize-winning economist "smug, overbearing & patronizing," in response to a short post on Estonia's economic recovery.

Krugman's 67-word entry, entitled "Estonian Rhapsody," questioned the merits of using Estonia as a "poster child for austerity defenders." He included a chart that, in his words, showed "significant but still incomplete recovery" after a deep economic slump.

http://graphics8.nytimes.com/images/2012/06/06/opinion/060612krugman2/060612krugman2-blog480.jpg"]http://graphics8.nytimes.com/images/2012/06/06/opinion/060612krugman2/060612krugman2-blog480.jpg


Since Estonia has suddenly become the poster child for austerity defenders — they’re on the euro and they’re booming! — I thought it might be useful to have a picture of what we’re talking about. Here’s real GDP, from Eurostat:

So, a terrible — Depression-level — slump, followed by a significant but still incomplete recovery. Better than no recovery at all, obviously — but this is what passes for economic triumph?

President Toomas Hendrik Ilves responded to Krugman in a series of outraged tweets, taking offense to Krugman's tone and writing that Krugman didn't know what he was talking about.

"We're just dumb & silly East Europeans. Unenlightened. Someday we too will understand," he tweeted. "Guess a Nobel in trade means you can pontificate on fiscal matters & declare my country a "wasteland". Must be a Princeton vs Columbia thing."

Estonia, which in 2011 became the latest country to join the eurozone, has been heralded by some as an austerity success story. That year, it clocked a faster economic growth pace than any other country in the European Union, at 7.6 percent. Estonia is also the only EU member with a budget surplus, and had the lowest public debt in 2011 -- 6 percent of GDP. Fitch affirmed its A+ credit rating last week.

Ilves, a strong austerity advocate, told Bloomberg News in May that the EU should implement austerity in order to boost economic expansion. “You can achieve growth through austerity. Estonia has done that,” he said during the interview. “Growth policy -- that doesn’t make sense to me.”


Let's write about something we know nothing about & be smug, overbearing & patronizing: after all, they're just wogs: http://t.co/EWZ5YCIT


Guess a Nobel in trade means you can pontificate on fiscal matters & declare my country a "wasteland". Must be a Princeton vs Columbia thing


But yes, what do we know? We're just dumb & silly East Europeans. Unenlightened. Someday we too will understand. Nostra culpa.


Let's sh*t on East Europeans: their English is bad, won't respond & actually do what they've agreed to & reelect govts that are responsible.

Padre Organtino
2012-06-08, 09:07
Actually this time Krugman is right. Estonia should have used devaluation.

Jonny
2012-06-08, 09:08
Paul Krugman is an idiot.

He came on Newsnight, a BBC program the other day and said that the problem with the economy is that there is "no demand".

That's typical Keynesian nonsense. "No demand," as if people don't want more things. Almost everyone on the planet wants as many things as they can get. The reason they aren't buying things is because they don't have any money, because the government keeps stealing our purchasing power via "stimulus" and "quantitative easing", recommended by idiots like Krugman.

He also keeps going on about "austerity" stopping the economy from growing. Well that's total nonsense again, not least because governments haven't even cut spending. Government spending in the UK has actually gone up over the last few years.


The guy is only in Europe to flog his shitty book.

---------- Post added 2012-06-08 at 09:10 ----------


Actually this time Krugman is right. Estonia should have used devaluation.

Stop pretending to know what you are talking about.
a. Estonia can't devalue their currency as they are in the Euro
b. There is no net benefit to devaluation. All the cheaper exports are countered by more expensive imports.

Vadim Verenich
2012-06-08, 09:13
Is Krugman Neo-Keynesean?

Jonny
2012-06-08, 09:14
Is Krugman Neo-Keynesean?
Yes.

Vadim Verenich
2012-06-08, 09:23
Yes.

That explains a lot.

Padre Organtino
2012-06-08, 11:41
Stop pretending to know what you are talking about.
a. Estonia can't devalue their currency as they are in the Euro
b. There is no net benefit to devaluation. All the cheaper exports are countered by more expensive imports.

Ah, my imbecile friend from British Isles again:p

a. Estonia entered Eurozone only in 2011. It could have devalued currency with ease back in 2008.

b.This is precisely the point of devaluation. It boosts home production and net exports helping to recover GDP. It is certainly a net loss from consumer's point of view as are the austerity measure. The latter are hoewever less efficient in the short run.