Krugman Too Generous to Germany: Wages Didn't Fall

Paul Krugman had a short blogpost in which he criticizes Hans-Werner Sinn, the head of a prominent German think tank, for insisting that the southern European countries have to go through deflation in order to restore competitiveness, rather than Germany having somewhat higher inflation. Sinn effectively says that these countries must do what Germany did in the last decade.

Krugman then links to a post which shows that Germany, along with Japan, were the only countries in the OECD to see decl...