Saturday, September 10, 2011

A one policy fits all need not be a straight-jacket

The Germans have a problem with the direction of ECB (see "Juergen Stark in surprise resignation from ECB" on If so, then what should the PIIGS say re ECB's Bundesbankish inflation phobia?

Rigid, antiquated, dogmatic economic thinking is putting European integration in peril (along with populist politicking)

Has the ECB inflation policy 2002-present reflected an equilibrium of the needs of all parts of the Eurozone or just a few of its members?

More Operations Research techniques and POV have to be applied to policy making. Europe needs more decision scientists in policy making (has more than enough politics, economics and finance)

Use of multivariate and Regression analysis in policy making can help Europe avoid a new recession and adopt a uniform economic policy that is an equilibrium of the need of the parts of the whole. That is what happens at national levels already, not a rocket science!

Plus since policy is a bundle of measures, it can it calibrated so as to maximise the benefits for the parts of the whole as well as the whole.

That is why I say, bring in the decision scientists in the policy making "room".

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