Stephen Roach: Take out Krugman’s baseball bat
Krugman portrayed the problem of global imbalances as solely coming out of China’s high saving rate and manipulation of its currency. Stephen Roach, Chairman of Morgan Stanley Asia, offers a more comprehensive perspective.
Americans have been saving nothing, consuming too much, and high on leverage. “Get your own house in order” before you carry stick toward others — that’s the sensible advice from Roach.