Jon Stewart responds to Paul Krugman’s criticism:
I think this exchange perfectly illustrates the debate over the Magic Coin Trick. Krugman wanted to get into nuance and detail and talk about this like it was a classroom exercise without real world consequences. But the value of money is entirely arbitrary, determined by how much “full faith and credit” people place in it. It doesn’t really matter if you’re right in some long-haired technical sense if the market decides you are full of shit. As Krugman, a Nobel Prize winning economist, should know, the market is always has the final word. It doesn’t matter how good your idea is if the market doesn’t agree.
Stewart, for all his flaws, cuts to the chase: even if technically legal, the Coin was a stupid idea. And it’s a good illustration of how unserious Krugman really is.