Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In the first part he's (like others in charge of policy) looking for an excuse to explain why "reforms" aka wage suppression aren't working: too little, too late. Though behind the reasoning he seems uneasily aware that building exports on wage cuts at a time of private-sector deleveraging and recession is... difficult. Yet only exports, he says, can save the economy...

The final paragraph contains some more reasonable points. One is suggesting an anti-recession responsibility for the ECB and admitting that, if there's deflation in the periphery, Germany has to accept inflation. The other is European-wide long-term investment in infrastructure, example energy.

So not entirely in(s)ane.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Feb 17th, 2012 at 10:37:31 AM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series