Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Friday, May 16, 2003

Fathoming the Unfathomable

In trying to 'best guess' just what Duisenberg's problem is, the Economist may inadvertently have picked up on an important clue:

In a little-noticed remark at the end of the press conference called to discuss the policy changes, the ECB's president, Wim Duisenberg, put his foot in his mouth once again. In a comment that seemed to come from the heart, he said: "In the 16 years that I was the governor of the central bank of the Netherlands, there were two years in which we had deflation of ½%. I publicly declared then that I lived in a central banker’s paradise."

That is not a view shared by most economists, who believe that deflation would mark a dangerous new twist in Germany’s declining economic fortunes. Mr Duisenberg’s comments will have brought no comfort to the chancellery in Berlin.
Source: The Economist

No comments: