As I said the other day, Mr. Krugman was saying that the economy was awash in excess savings. His words implied that the US was awash in excess savings. Then I said yesterday that the truth was in fact that the world was awash in excess savings.
Yesterday, Mr. Krugman clarified his point and said…
“And we are, as I said in a different context just the other day, in a world awash in savings, a world in which someone who decides to spend less and save more makes the whole world poorer.”
Even though he didn’t specify “world” the other day, he did now.