"To defend the truth, to articulate it with humility and conviction, and to bear witness to it in life are therefore exacting and indispensable forms of charity."

H. H. Benedict XVI. Caritas in Veritate Encyclical. June 29, 2009

Saturday, July 14, 2012

Krugman economics

If some agent has been stealing from another and a policy of avoiding  stealing is imposed, the robber losses. So, by worsening some agents, such a policy is not unambiguously good for the economy and maybe it should even be avoided.

This is how I interpret Krugman economics from his book on international trade. Some agents "lose" because they are not allowed anymore to benefit, say, from protectionism (until here, we agree), so a trade liberalization is not unambiguously good for the economy (with which I disagree). Plus, how is that trade liberalization should be undertaken if no (necessarily artificial) protectionism had been imposed before in the first place?

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