In response to Paul Krugman’s suggestion that the United States get tougher on China’s monetary policy, economist Stephen Roach, Morgan Stanley’s Asia chairman, suggested on Bloomberg Television this morning that we pummel the Nobel laureate.
“I think we should take out the baseball bat on Paul Krugman,” Mr. Roach said. “Isn’t it the height of hypocrisy for America to articulate a particular position in its currency, but the Chinese are not allowed to do that, especially since they as a developing economy–with an embryonic financial system–need a currency anchor probably a lot more than a sophisticated, quote unquote, economies like the United States.”
Continuing on the theme of physical violence, Mr. Roach complained that Senator Chuck Schumer “had been bashing China now for about five years now,” and rejected the notion China’s currency contributed to the financial crisis. He did not recommend bashing Mr. Schumer in response.