The Good Fight Paul Krugman on Why International Trade is Good
May 24, 2025
In this insightful conversation, Nobel Prize-winning economist Paul Krugman shares his expertise on international trade, emphasizing its benefits for economic growth. He and host Yascha Mounk dive into whether the Euro was a mistake, discussing its impact on member countries during economic crises. Krugman also critiques traditional economic models for oversimplifying trade's effects, particularly on local job markets. The duo explores innovative approaches to economic theory and the balance needed between trade and national security in today's tech-driven world.
AI Snips
Chapters
Transcript
Episode notes
Value of Economic Models
- Economics uses simplified models to clarify complex real-world processes and reveal underlying principles.
- These models, despite their simplicity, provide valuable insights beyond intuition or personal experience.
Advice for Academic Researchers
- Look at real-world anomalies that existing academic models can't explain.
- Listen to diverse and unconventional perspectives outside your usual analytic community.
Structural Flaws of the Euro
- The euro was convenient but flawed without labor mobility or fiscal integration.
- Countries like Spain suffered prolonged unemployment due to inability to adjust wages or currency.