10 key points from Nobel Laureate Paul Krugman’s address in SBI Mega conclave

Nobel Laureate Paul Krugman addressed the audience in the SBI Mega Conclave on Wednesday.

Nobel Laureate Paul Krugman addressed the audience in the SBI Mega Conclave on Wednesday.


Here are 10 key points from his speech.

# Development in transportation technology has made trade easier. But now, the technological progress is in manufacturing not in transportation. Robots are going to change how we manufacture goods and eventually the shape of markets.

# Commenting on the current scenario of global trade, he said, world trade was open in the 1930s, currently it is in hyper-globalisation state.




# The world is not seeing a retreat from global trade, we are seeing the plateau. Global trade is plateauing because of protectionism.

# He pointed out that India being a rapidly growing emerging market has to rely on exports, particularly export of services.




# Giving credit to the policymakers, he said, India used to be a very restrictive country during his student days.




# South Korea went to become advance economy from being very poor one. Emerging economies today want to be like South Korea. However, It may not be possible to follow the footstep of Seoul or China as the opportunity window will get narrower for developing economies.




# Showing disappointment at the growth rate of India, he said, the country should be growing at eight percent not six.




# He opines that there doesn’t seem to be a fiscal problem in India. However, India has some short term macroeconomic issues on which It needs to work.




# He attributed globalisation as one of the reason behind Income inequality in wealthy countries.




# Commenting on India's case, he said, though there is income inequality and poverty in the country but the scheme to fight poverty are also become a driver for growth.

Happy investing

Source:Moneycontrol.com