Paul Krugman

@paulkrugman ↗

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Last Checked Oct. 16, 2022

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Sat Sep 24 12:40:07 +0000 2022

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Paul Krugman @paulkrugman

The result is that sterling depreciation actually *improves* Britain's net international investment position (the same thing happens to the US). So a balance-sheet currency crisis story doesn't seem to make sense 6/ — PolitiTweet.org

Posted Sept. 24, 2022

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Paul Krugman @paulkrugman

That was the story for Asia in the 90s, the Argentine crisis 2001, part of the problem in Turkey now. But while the UK has a lot of external liabilities, they're overwhelmingly sterling-denominated; the UK also has external assets, largely direct investment 5/ https://t.co/VAdLtPZBPe — PolitiTweet.org

Posted Sept. 24, 2022

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Paul Krugman @paulkrugman

The other way you can have a currency crisis is if markets believe that you can't or won't service your public debt, and will monetize it instead; this was the story behind the 1926 franc crisis and, I think, the 1976 sterling crisis (which needs revisiting) 7/ — PolitiTweet.org

Posted Sept. 24, 2022