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The purpose of the Mitterrand's decision was to allow France to coexist in a semi-fixed exchange rate regime with West Germany. It was a political choice of macroeconomic adjustment, not one of supply-side voodoo and ideological convergence.

However, Hollande's choice is, at bottom, the same: monetary co-existence with Germany, or, more broadly, the absolute rule of French policy is that France's lot is cast in with Germany. That choice gives France no room to manoeuvre. The "suppy-side voodoo" is an attempt to put a varnish on an indeed desperate scheme to mimic Germany's past social "reforms" (even down to inviting Peter Hartz).

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Feb 9th, 2014 at 04:54:31 AM EST
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The Euro is not a German plot for world domination but a French self-goal.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun Feb 9th, 2014 at 01:05:59 PM EST
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You re totally right, it s pretty unbelievable that our elites have been so eager to drop a currency/system they had control on for the DM basically.I am still at lost to understand what they were really trying to achieve.

The Franc Fort Policy - EuroDM has condemned two generation to be stuck in life for no good reason, with politicians "forced"( but do they even realize it?) to rewrite the same policies (Austerity/desindustrialization/vicious cycle) again and again.

it would be a joke if is was not so sad that only the FN seems to have a clue on what s happening and what to do to return to growth/get out of the cycle( the UPR is pretty spot on on it but irrelevant).

by fredouil (fredouil@gmailgmailgmail.com) on Thu Feb 13th, 2014 at 06:46:25 AM EST
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