Applying Krugman's logic below to developing countries that have surpluses in certain goods because of "weak demand" (as, eg, India has in staple crops), would mean that these countries too should avoid structural adjustment reforms that are supposedly meant to squeeze the life ... I mean, squeeze greater efficiency out of their economies. Uday
> But Japan isn't limited by its capacity. It is plagued by chronic
> insufficiency of demand that is, consumers and businesses are
> unwilling to buy as much as the economy is already capable of
> producing. And in such an economy, attempts to increase efficiency
> often do more harm than good.