Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
When you make that argument Eurozone-wide you end up with the argument that core surplus should have flowed abroad. Which would have meant a weaker Euro (and you have seen how the Swiss Central Bank reacted to that) or foreign-credit tensions in peripheral EU countries (which has happened, massively, with Core - mostly Austrian - funds loaned to Central-Eastern Europe, and blown up twice since the crisis started) or monetary deflation in the Eurozone (again, Eurozone-wide recession).

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 09:58:03 AM EST
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