Paul Krugman: “I used to be an economics ambulance-chaser — someone who raced around the world to wherever there was an interesting economic calamity. And this international experience probably made me more sensitive than most economists to the way economies that seem to be doing OK can suddenly fall off a cliff into economic crisis.”
“In 2008, of course, America had a financial crisis of its own — and it was a nightmare. But it was very different from the emerging-market crises I used to spend so much time on. And right now I’m worried that the U.S. might be facing an emerging-market-type crisis: A ‘sudden stop,’ an abrupt cutoff of inflows of foreign capital. If we have a crisis like that it could, in particular, cause a severe housing crash.”
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