well it’s hardly to believe that this nobel price winner is still commenting on economic things.
Get that here: http://www.cato-at-liberty.org/paul-krugmans-remarkable-success-story-in-latin-america/
If you like you can check my writing about Argentina here or on my outer mises blog. Just to get that “clear” the Inflation rate is > 20% which means the value of money is reduced to half of it’s current value an around 3,5 years !!!. Which means the state of Argentina steals very very big from every one. The success of Argentina was also that they have not beared there debts (just against the IMF) and just have left losses around 70 % of the original value of the bonds
Now this same Krugman now ask for an increase in taxes 91% taxes
Now If we take him as contra indicator, we know what would be right. Reduce the overall tax rate to below 9%. For that to work, I guess the state has to be “cut” down a “little” bit on it’s expenses.