Obsessed With Aggregate Demand

Here's a letter to the New York Times:

If Beijing doesn't further raise the value of the renminbi, Paul Krugman wants Uncle Sam to impose trade sanctions on Chinese producers ("The Renminbi Runaround," June 25).  Mr. Krugman justifies his embrace of protectionism by pointing to today's high unemployment rate: by making Chinese goods less costly for Americans to buy, Beijing's monetary policy allegedly reduces "demand for goods and services to generate the jobs we need."

If Mr. Krugman is...