a little bit of inflation (say 3-7% per year) is good for the poor and bad for the rich; more is the opposite.
Funny, 8 % per year is the ballpark figure I came up with for a manageable €-zone inflation baseline.
Of course, that's all long-term. Short-term, the solution is still a Greek sovereign default.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
I don't deny the German neuroses; I just don't think they're the thing we should focus on today: they are a convenient scapegoat for other problems. Wind power
We're pillorying them for their inflation target, and for their insistence on year-on-year budget balance.
Oh, and for the flippin' hypocrisy in demanding year-on-year budget balance from brown people who speak funny while running cycle-averaged deficits themselves...
