Did I tick off Stormy with this? Stormy fires off some theoretical tale that we would expect a lot of U.S. direct investment in China. Fine – but that leaves a big puzzle as to what is happening in the real world, which my data suggested and Paul Krugman also noted.
If AB readers are frustrated with this spat between me and Stormy – you have a right to be. But readers of this blog also have a right to expect our posts to be based on the data. Theories are fine – and I have no problem with Stormy’s latest theory, but Paul Krugman was try to have us focus on the evidence. Please don’t insult him for doing so.