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Anders Aslund: why Ilves is right and Paul Krugman is not

"Fifth, Krugman has always claimed that the Baltic states need to devalue to increase their exports. In fact, exports have been skyrocketing above all expectations without devaluation."
Wrong: Euro devalued quite a lot (ca.18%)against SEK for instance which was the main engine of export growth. Reply to the comment answer
~Devaluation [12.06.2012, 12:25]
Estonian propaganda guy will soon respond. ha ha ha
~boyd skinned fox [12.06.2012, 17:18]
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How could Ilves be right? He didn't even try to write an argument. Reply to the comment answer
~Mark. [12.06.2012, 14:01]
My problem is not what he said. I am still puzzled how a head of state can act so immaturely. Well I guess "the state" being Estonia that is understandable.
~secret life est eicke [12.06.2012, 17:19]
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It was the other way around. The swedish krona lost over 20% against the Euro between 2008 and 2009 (from 9.50 to 11.50). Reply to the comment answer
~dudde [12.06.2012, 14:05]
2008 or 2009 are not so relevant here, the export boom to Sweden was in 2010 and 2011 and starting from 2009 Euro devalued from 11SEK to 8.8 SEK. That certainly helped:)
~2010 [12.06.2012, 14:55]
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All Estonian exports do not go to Sweden. Finland and Russia are also among the biggest export destinations. Reply to the comment answer
~Exporter [12.06.2012, 14:14]
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Another swedish clown or perhaps even an american with estonian ancestry? Yawn. Hey Aslund why don't you comment about Sweden Bank ripping the estonian pensioners off and than asking bailout from the swedish government. Reply to the comment answer
~cletus republic ikn [12.06.2012, 17:15]
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I find it unlikely that Krugman has a "personal issue with the Baltics". Surely he has a lot of other issues on his mind.

Here's his blog:

He has written a few articles about Latvia lately, but he certainly doesn't seem to be focused on the Baltics overall. Reply to the comment answer
~ameeriklane [12.06.2012, 17:38]
Krugman has a right free speech. I mean Baltic clowns want to copy western democracy but Ilves sounds more and more like Päts everyday. What's next, banning all the parties who do not agree with the migthy rise emperor Toomas Ilves.
~tox-bund [12.06.2012, 19:13]
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The reason has has so much attention for the Baltics lately, is because American proponents of austerity use the Baltics as a model. Reply to the comment answer
~Mark. [12.06.2012, 18:09]
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Krugman is wrong, because Estonia did have fiscal stimulus from 2008 to 2011 (and continuing in 2012). Net inflow of EU funds increased from 1% of GDP in 2008 to 5,2% of GDP in 2011. That is 4% of the deficit that didn't have to be corrected through spending cuts or tax increases!

http://www.imf.org/external/pubs/ft/scr/2011/cr11333.pdf (p.31) Reply to the comment answer
~Mark. [13.06.2012, 01:40]
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Isn't it amazing how the truth hurts!

Krugman is this, Krugman is that....but it's obvious Krugman is an intellectual collosus.

How many nobel prizes do Estonian economists have?

"The Prize in Economics, as it is referred to by the Nobel Foundation, was established and endowed by Sweden's central bank Sveriges Riksbank, in 1968 on the occasion of the bank's 300th anniversary, in memory of Alfred Nobel" Reply to the comment answer
~sad pygmies [19.06.2012, 02:25]
Estonians are indeed very childish people to say the least. When you point out the problems in their society they seem to go to an impotent infantile rage to say the least. Constructive criticism to them is the same as constant praise for their imaginary achievements.
~you are right [19.06.2012, 09:05]
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What is truly pathetic is that the SAME punter has written the last six or seven posts across two articles generating a conversation with himself. Whoever it is needs to get back on their meds quickly before the men in white coats show up. Reply to the comment answer
~Psycho [19.06.2012, 09:23]
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Mark is right!!!!!!!!! Reply to the comment answer
~Ken [19.06.2012, 17:54]
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To Mark's point. Estonia saw how the PIIGS profited from preEU status with their influx of Euros for Infrastructure and other program development. PreEstonian EU status came with huge payments of Euros to bring Estonia up to European standards. State Grant Committees wetn through thousands of Applications from all levels of Government and Private entities with schemes to "improve" something, from Tourism programs to roads and telecommunication. That stimulus got all the "Lotto winners" in deep trouble as it was Christmas and "cheap" money for the taking. Coming back from that Estonia has continued with their "belt tightening" (HA) while taking advantage of continued influx of EU support, read "stimulus", especially from 2008 to 2012. Mark is right, austerity has not buoyed the Estonian ship of State!!! Just think of all the cats that got fat on this influx of money while unemployment remains high and the poor and Pensioners are hurting (eating the cheapest food know to man--we know what our Uncle eats). Estonia will be hurt long term by their Education cuts as well. Good luck Estonia! Krugman is no dummy. Reply to the comment answer
~Ken [20.06.2012, 16:31]
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