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Monday 6 May 2013

Stupidity or Targeted Policy???

http://www.abc.net.au/unleashed/4667484.html

"One possible justification of the two diametrically opposed policy settings in Europe and in Japan might be that these two advanced economies are facing different challenges. Europe's leaders like to imagine that, unlike Japan, Europe is not facing a long-lasting recession, let alone deflation. For them, there is no need for eurozone governments to loosen up the purse strings, or for the ECB to flood the financial markets with digital euros. What matters to them is that the crisis is utilised to force upon the eurozone's laggards (the Club Med nations in particular) the reforms that will help them regain their 'competitiveness'."

Is there method to this madness?

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