Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Lesson 2: Federal currency, state-level fiscal policy, persistent interstate trade surplus: Pick any two.

That one has been learned. The EU is in the process of stripping the Eurozone net importers of their national fiscal policies, in order to preserve the federal currency and the intra-EU trade imbalances. They call this the "pact for the Euro", and they tried to sell it as a "competitiveness pact" for about two weeks.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Apr 21st, 2011 at 02:55:39 AM EST
Lesson 3: Low inflation, heterogenous currency union, state-level fiscal policy: Pick any two.

Also learned. See parent comment.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Apr 21st, 2011 at 02:56:27 AM EST
[ Parent ]
The question is, how broadly spread is the lesson? If only the supporters of one pair of the three realize that its a choice, and the supporters of other pairs are not aware that they are being squeezed out when they are conned into supporting the third ... well, then the supporters of the other pairs will get squeezed out by circumstance independent of political balance of power.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sat Apr 23rd, 2011 at 07:58:42 PM EST
[ Parent ]

The EU is in the process of stripping the Eurozone net importers of their national fiscal policies, in order to preserve the federal currency and the intra-EU trade imbalances.

But that's not the lesson - the lesson is that net exporters can have their own fiscal policy either - ie they have to accept pooling of resources or bailouts (whether organised or through default), and that one has NOT been learnt yet.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Mon Apr 25th, 2011 at 05:21:28 AM EST
[ Parent ]

Display:

Occasional Series