What Estonia can teach us about economic recovery—and how The country’s leaders got into a fight with New York Times columnist Paul Krugnan:
On June 6, in a blog post titled ‘Estonian Rhapsody,’ Krugman took on what he called ‘the poster child for austerity defenders.’ In his post, he graphed real GDP from the height of the boom to the first quarter of this year to show that, even after a recovery, Estonia’s economy is still almost 10 percent below its peak in 2007. ‘This,’ he wrote, ‘is what passes for economic triumph?’
‘It was like an attack on Estonian people,’ says Palmik, in an office above his plant, surrounded by blueprints for his new production line. ‘These times have been very difficult. People have kept together. And this Krugman took all these facts that he wanted.’
“Krugmenistan vs. Estonia.” — Brendan Greeley, Bloomberg Businessweek
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