thank-you note



  • Paul Krugman's suggested policy for responding to a foreign subsidy: send their embassy a thank-you note, on the grounds that one benefits from cheaper imports via the terms of trade.
  • Paul Krugman, again in his December 31, 2009, column in the New York Times, suggesting this as the US response if China were to sell dollars, on the grounds that it would improve US competitiveness and employment. (This is opposite of #1, presumably reflecting concern in 2009 with short run weakness of US aggregate demand rather than longer-run effects of terms of trade.)