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Stark and Weber famously broke collegiality and spoke in public against ECB council decisions in May/June 2010.

They also spoke demonstrably factually wrong.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 2nd, 2011 at 01:35:24 PM EST
[ Parent ]
that the ECB is hardly german-dominated.

And what do you mean, its not their neo-liberalism?

For all their inflation obsession, none of them is a gold bug.

by IM on Thu Jun 2nd, 2011 at 06:41:19 PM EST
[ Parent ]
I call them gold bugs because they manage the Euro as if it were on the Gold standard and not a fiat currency.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Jun 2nd, 2011 at 06:55:59 PM EST
[ Parent ]
Entertaining but nothing more. The obsession of german central bankers with inflation is odd, but a gold standard it isn't. Their intellectual background is neoliberal; Weber did go to Chicago, after all.
by IM on Thu Jun 2nd, 2011 at 07:19:34 PM EST
[ Parent ]
I happen to be in good company: The eurozone was supposed to be an updated version of the classical gold standard. says Martin Wolf.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Jun 2nd, 2011 at 07:25:26 PM EST
[ Parent ]
you base your unfounded claims on the unfounded claims of Martin Wolf. Who hardly was a architect of the eurozone. And who is claiming that - unsourced n. b. - now.
by IM on Thu Jun 2nd, 2011 at 07:52:06 PM EST
[ Parent ]
The Eurozone operates like on a gold standard in that the ECB refuses to create fiat money.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Jun 2nd, 2011 at 07:55:55 PM EST
[ Parent ]
Not enough money. That is not quite the same. A too strict monetary policy is exactly that, not a gold standard. Words have meaning, after all

And the "left" in the US has  more or less the same complaints about the Fed. A gold standard too?

by IM on Thu Jun 2nd, 2011 at 08:01:30 PM EST
[ Parent ]
Are you familiar with "bond purchase sterilization"?

A central bank which insists on borrowing from private banks with one hand in order to buy bonds from them with the other and frets every time it fails to borrow enough is operating as if it believed that the total available number of Euros is constant. Which makes sense under a gold standard but it bizarre nonsense in a fiat currency regime.

Therefore the ECB manages the currency as if it were on a gold standard and not a fiat currency.

The macroeconomic consequences of the gold standard, of currency pegs, of the European Exchange Rate Mechanism and of the Euro are the same: recurrent devaluation crises. The Euro may yet succeed in replicating the greatest feat of the 1920s gold standard: an actual depression.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 2nd, 2011 at 08:12:12 PM EST
[ Parent ]

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