Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
That is just realistic. Draghi is not the problem.

(Since he chairs the ECB I am a bit of a fan)

by IM on Thu May 29th, 2014 at 12:28:04 PM EST
[ Parent ]
Look, the German conviction that the 1923 hyperinflation caused Hitler in 1933 is a neurosis, to put it charitably. Brünning was applying austerity in 1931.

Don't they teach the history of the Weimar Republic in German schools?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Migeru (migeru at eurotrib dot com) on Thu May 29th, 2014 at 04:03:20 PM EST
[ Parent ]
What are you talking about?

And indeed, the great depression , Brüning and austerity and Schacht and Mefowechsel are all very much part of the curriculum.

by IM on Thu May 29th, 2014 at 04:53:23 PM EST
[ Parent ]
I'm talking about "inflation => invading Poland", which is very much what German policy neurosis is about.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Fri May 30th, 2014 at 05:31:34 AM EST
[ Parent ]
That seems to be rather your neurosis.
by IM on Fri May 30th, 2014 at 09:13:50 AM EST
[ Parent ]
I'm not the one who insinuated Draghi is Faust's Mephistopheles. That would rather be Jens Weidmann.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Fri May 30th, 2014 at 09:17:28 AM EST
[ Parent ]
Draghi is devil in Weidmann's euro drama - FT.com  (September 23, 2012)
Whatever you need to know about Germany, you will probably find it somewhere in Goethe's Faust. But it is rare that wisdom is found in part two of the tragedy, one of the most revered and least read books in all of German literature. Someone who managed to dig up something truly remarkable from it was Jens Weidmann. The president of the Bundesbank cited Mephisto's advice to the Emperor, quoted above, that the simple solution to a lack of money is to print it
Mephisto's speech encapsulates Germany's ultimate nightmare about fiat money and about monetary union. It was clear from the context and the timing of the speech that Mr Weidmann would cast Mario Draghi in the role of modern-day Mephisto, though, obviously, he did not say so explicitly. Mr Weidmann's remarks concluded one of the most extraordinary two-week periods in the history of central banking. We are on the cusp of an important new development, one the Bundesbank abhors. The US Federal Reserve has adopted a new programme of quantitative easing and has become much more determined in guiding future expectations. The European Central Bank, which Mr Draghi heads, has announced an unlimited - though conditional - programme of bond purchases; a programme that jars with everything the Bundesbank stands for and believes in.
by Bernard on Fri May 30th, 2014 at 11:09:23 AM EST
[ Parent ]
I guess Weidmann hasn't read Faust 2 either. If he had, he would have noticed the country suffering from austerity before Mephistopheles comes up with his plan, and the neighbouring countries about to invade it. After a bout of inflation, things calm down, and, in the next scene, the new prosperity shows everything going fine, with some squandering the money, but others using it to get out of debt etc.

As Wedimann should know, having certainly read Faust 1, Mephistopheles is the one who "stets das Böse will und stets das Gute schafft." Draghi, Merkel and all the rest seem more determined in showing us what the road to hell is paved with.

Weidmann's misreading of Faust pales when compared with the FT, of course

Mr Weidmann did not highlight another cautionary tale from the play for economists. Faust in the final earthbound scene comes up with a plan for universal prosperity and happiness ... and promptly dies.
by gk (gk (gk quattro due due sette @gmail.com)) on Fri May 30th, 2014 at 11:27:15 AM EST
[ Parent ]
The first room of the Dokumentationszentrum at the Reichsparteitagsgelände in Nürnberg has a case with lots of huge bills presumably to indicate that things started with hyperinflation. I couldn't find anything comparable about Brüning.
by gk (gk (gk quattro due due sette @gmail.com)) on Fri May 30th, 2014 at 07:18:53 AM EST
[ Parent ]
I was talking about little things like school, you know.
by IM on Fri May 30th, 2014 at 09:12:59 AM EST
[ Parent ]
I know. But there's what they teach you at school and what "you" (i.e., not you personally...) retain.
by gk (gk (gk quattro due due sette @gmail.com)) on Fri May 30th, 2014 at 09:22:42 AM EST
[ Parent ]

Display: