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Questions:

  1. Does this kind of market intervention even fit in Trichet's marketista/monetarist brain? Does it fit in the marketista/neoliberal brains of the Ecofin? How about the Commission?
  2. Has he proposed it to the marketista/neoliberal Ecofin? Does he need to do it?
  3. Has the idea occurred to anyone in the merketista/neoliberal Ecofin? Have they proposed it to Trichet?


En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 04:27:12 AM EST
[ Parent ]
Migeru:
the merketista/neoliberal Ecofin

I assume it's a typo, but I like it.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Feb 12th, 2010 at 04:55:52 AM EST
[ Parent ]
It is a typo, but I'm trying to decide whether the right spelling is Marketista or Merkelista.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 07:01:56 AM EST
[ Parent ]
Perhaps you in Europe too have your Obamanations. Can or will the EP bring any pressure on any of these people?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Feb 12th, 2010 at 12:44:42 PM EST
[ Parent ]
The ECB is the most politically indepedent central bank out there. And unlike the Fed, whose price stability mandate is on a par with other goals such as macroeconomic stability and employment, the ECB is only charged with price stability.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 02:19:04 PM EST
[ Parent ]
But would not putting the burn on manipulators and pirates such as GS serve to insulate the euro from volatility, thus aiding the ECB's sole directive?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Feb 12th, 2010 at 05:17:23 PM EST
[ Parent ]
Not if you labour under the delusion that volatility is just measurement noise, not a real effect of economic significance.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Feb 12th, 2010 at 05:22:22 PM EST
[ Parent ]
Volatility is noise, but not measurement noise :P

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 05:25:17 PM EST
[ Parent ]
For any who think it is "just noise" I would suggest that they try standing within half a kilometer of the launch pad of the Space Shuttle--without ear protection, or, more mercifully, within a meter on axis of a large speaker array being swept with 1/3 octave noise at 130 dB SPL. Indeed, I have wondered how much of the electro-magnetic component of the Big Bang can be accounted for by 1/f noise. A large part of the detonation of a thermonuclear device is "just noise". Idiots.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Feb 12th, 2010 at 05:56:33 PM EST
[ Parent ]
As I have argued in another comment, sovereign Euro debt is part of the money supply and so managing the debt markets falls within the purview of the ECB's monetary policy mandate, narrow though it is.

But anyway, I think it's obvious by now I'm too unserious to be central banker.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 05:27:33 PM EST
[ Parent ]
So we continue to suffer at the hands of blind regulators, whatever the cause of the blindness.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Feb 12th, 2010 at 05:59:00 PM EST
[ Parent ]

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