Tuesday, 18 September 2012
If some in the Eurozone did not suffer from inflation phobia
Maybe one needs to remind Mr. Axel Weber and Mr. Jens Weidmann that if the Trichet led ECB hadn't driven Euro systemics/dynamics out of whack due to inflation phobia ie a 2% inflation target, bond purchases would not be needed today by the Draghi led ECB, would they? What the Eurozone really needs is softer Euro to stop flood of imports & promote exports plus a more realistic EU trade policy (which German mega exporters don't want,do they). Otherwise sooner or later even Germany will have to adopt India/China wages to survive. Good luck with that. Greece and other PIIGS merely Ein Experiment.