I do wish people would get this right

Given these recent changes in the IMF, it is ironic to see the European governments inflicting an old-IMF-style programme on their own populations. It is one thing to tell the citizens of some faraway country to go to hell but it is another to do the same to your own citizens, who are supposedly your ultimate sovereigns. Indeed, the European governments are out-IMF-ing the IMF in its austerity drive so much that now the fund itself frequently issues the warning that Europe is going too far, too fast.

The IMF always, but always, insisted upon currency devaluation as a solution.

What\’s the one thing that the EU won\’t allow? The one thing that is making it all so damned painful?


3 thoughts on “I do wish people would get this right”

  1. According to this FT article, the Eurozone as a whole doesn’t have a balance of payments problem:


    So devaluing the Euro is not a solution (which is what I take Tim to be suggesting).

    As to what the best solution for Euro austerity is, there just aren’t any simple solutions because the basic problem is a design flaw in the whole EZ project. But of course that doesn’t stop The Guardian parading its social concern for those suffering from austerity (e.g. in the article Tim links to).

    As for constructive ideas for solving economic problems, don’t bother looking in The Guardian. I never do.

  2. This is one of the most idiotic articles I have ever read (the source article not your commentary, Tim!) -It’s like a proverbial diamond mine in terms of gems. I love the idea that ‘Capitalism was totally discredited by the Great Depression’ and the failure to mention its alternatives (Nazism/Fascism and Socialism) were totally discredited by the second World War 2, together with no mention of the real reasons behind the EU drive for austerity – Proof positive that political correctness in hiring of academic posts is alive and well in Britain…

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