European Monetary Policy Analyzed
I have a article discussing the monetary policy of the ECB on the German web site Der Invest Informant. After the recent small quarter point interest rate hike the ECB was again accused by EU politicians of not inflating enough. But I point out that contrary to the general perception, ECB policy have been highly inflationary and this have caused great distortions, distortions that will become even greater if the EU politician's call for even more inflation would be granted.
Comments (4)
Of course the politicians are going to blame the ECB, but that doesn't mean they believe their own lies. The ECB is just an easy scapegoat for their own problems because it's not directly under their control. They would blame the weather too if they could.
Published: December 7, 2005 12:54 PM
Impressive! The dream of a world state is going to fail quicker than I expected. I wonder what the mini-states will do when unemployment jumps to no avail. Maybe the mini-states will simply modify how the data is collected to hide the facts. I still can't believe anyone trusts the unemployment numbers issued by Zimbabwe.
Published: December 7, 2005 1:08 PM
Stephan has provided another good analysis of an important current economic issue. Speaking as an American, as bad as our monetary, fiscal, and regulatory policies are, we are anything but alone, as the policies of the EU countries and the ECB illustrate. Apparently, the curse of imbecilic Keynesian economics is a Western, if not a worldwide, phenomenon.
Published: December 7, 2005 2:50 PM
Not only politicians are statists, but many simple citizen too... often that's how unconsciously, people I talk to understand democracy : the right to vote for someone who, by chance, will favor their local interests, on the costs of some unfortunate one. To many people, politics looks like a stupid lotery game (another State monopoly).
In the late 80's, a belgian politician (Van den Boeynants) who had just been convicted of corruption, was elected to become mayor in Brussels. People wanted the most powerful "crook" to defend them "against the others...". Eventually he declined the office though, because of the public pressure...
Published: December 8, 2005 11:15 AM