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Krugman: The International Finance Multiplier

Posted on October 06, 2008

There has been a lot of talk about what caused the financial crisis, and the role of regulation in bringing about problems has been a frequent topic of discussion (there are assertions that both too much and too little regulation caused the crisis). It would be helpful if we could look at the international economy, note that the financial problems are now widespread, and then conclude it could not have been unique regulation in the US that caused the problems we are seeing worldwide (though certainly common regulatory errors across countries would fit the story). However, unless I've misinterp...

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