Showing posts with label Counterfeiting. Show all posts
Showing posts with label Counterfeiting. Show all posts

Tuesday, February 28, 2012

Is North Korea "stimulating" the world economy?

It seems that there is alarm over alleged counterfeiting by North Korea, which supposedly is creating a number of $100 fake bills that are hard to detect as counterfeits.

I would like to know why anyone in the USA would oppose such a thing, given that North Korea is doing what Paul Krugman in The Return of Depression Economics claimed creates a "free lunch": printing money. Why would it be OK for the Federal Reserve System to do what Krugman recommends -- directly purchasing short-term U.S. Treasury paper in order to fund U.S. Government spending -- but wrong if North Korea essentially does the same thing?

It seems to me that Krugman should be writing a blog post or column praising North Korea for its "stimulus" efforts.