Here.
I dare say it will strike most people as pie in the sky, but it makes sense that people who want to preserve the Euro start formulating proposals such as this. Two reasonable conditions attaching to any such proposal seem to me to be that: (a) entry to any such community be decided by popular referenda in each country; and (b) that there be some sort of Connecticut compromise in place so that the rights of small states are protected.
Here.
The Economist has been hosting a roundtable discussion on deflation in the Eurozone, and asked me to say something about this from a historical perspective. My contribution is here. (I should also say that the copyeditor removed my reference to Barry Eichengreen, the go-to person on these matters.)
I can’t quite believe that he said it, but he apparently did. Go tell it to the small businesses in my favourite French village who have had to close since 2008.
Arguing against Say at a time like this is like shooting fish in a barrel, so let’s not even bother. The more alarming point is what this tells us about the European left: to all intents and purposes, in many countries there is none. Ambrose Evans-Pritchard puts it well, I think:
Trade unions in the West are strangely silent, pushed to the margins by the atomised structure of modern work. Europe’s political Left is so compromised by ideological defence of monetary union – a Right-wing project, or “bankers’ ramp” as the Old Left used to say – that it cannot muster any articulate policy.
Hollande’s extraordinary statement that supply creates its own demand, at a time when the Eurozone economy is up against the zero lower bound, and unemployment is terrifyingly high in several EMU member states, is just an extreme, self-satirizing, example of the phenomenon. If what Europe needs is for France to make Germany an offer it can’t refuse — allow the ECB to seriously loosen monetary policy, or we may not be able to stick with EMU — then we’re not getting it any time soon.
Now, if you’re on the right I suppose you might welcome the fact that the left is committing hara kiri on the altar of European orthodoxy, but you shouldn’t. For the reality is that orthodoxy is letting the people badly down, as Martin Wolf pointed out today, and the people aren’t stupid. If the left is not going to offer them an alternative, then Eurosceptic parties will. And unfortunately most of those are on the extreme right.
(H/T Mark Thoma.)
This is a terrific graph courtesy of Paul Krugman, that speaks a thousand words.