Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Are you saying that the France Press thinks this is a good idea?

If France cuts it budget, where is the demand gonna come from? Germany? Ha!

Maybe we can beg the Fed the keep the printing press rolling.

by rz on Mon Oct 6th, 2014 at 10:42:42 AM EST
[ Parent ]
The French chattering classes are completely captured by the idea that the deficit must be reduced, therefore unfortunately the state must be shrunk (and they forget to mention the corollary, crashing the economy)

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Mon Oct 6th, 2014 at 10:48:12 AM EST
[ Parent ]
When Gerd Schroeder did the same in Germany the economic consequences were severe. But it was done at a time when the global economy was going more or less well. This time it is going to be a disaster.
by rz on Mon Oct 6th, 2014 at 10:51:47 AM EST
[ Parent ]
There is little or no place in the French public discussion (journalists, commentariat, pols of "left" or right) for a different point of view than: France is hopelessly retrograde and must shrink the state, reduce benefits and taxes, deregulate the labour market.
by afew (afew(a in a circle)eurotrib_dot_com) on Mon Oct 6th, 2014 at 11:33:01 AM EST
[ Parent ]
Is there any criticism of the ECB for failing to meet its 2% inflation target?
by rz on Mon Oct 6th, 2014 at 11:36:08 AM EST
[ Parent ]
There's sometimes some concern about low inflation, but as long as "deflation" can be avoided as a topic of discussion, it doesn't reach alarm proportions.

Anyway, since growth and jobs come from austerity...

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Oct 6th, 2014 at 11:43:48 AM EST
[ Parent ]
A key argument why Labor market liberalization is supposed to generate growth, is that it allows to deploy capital in the most effective way. But even if this is true, it can only work if capital is deployed at all. And to do this you have to have a central bank which is committed to keep inflation up (see Federal Reserve). Since this is not the case in Europe, labor market reform will be a major disaster.
by rz on Mon Oct 6th, 2014 at 03:37:03 PM EST
[ Parent ]

Display:

Top Diaries

Occasional Series