My take on the European rumblings about fiscal union came out today in the WSJ: unions http://online.wsj.com/article/SB10001424052702304707604577428211717125298.html
Basically, the Greman take on fiscal union is the opposite of what the U.S. fiscal union has done for the last hundred years. Ours serves as a way to ease adjustments that the lack of a flexible exchange rate between states makes problematic. The discipline based fiscal union just makes those worse.
no ungated version?
ReplyDeletehmm. looks like wsj gates it unless you google search it by name
ReplyDeleteAustan -- Help us out with this, from Tim Duy: http://economistsview.typepad.com/timduy/2012/06/this-is-just-sad.html.
ReplyDeleteThe Fed just lowered its inflation projection for 2012 to well below 2 percent. It projects core inflation at or below 2 percent for this year and next. It projects sluggish GDP growth (as does everyone else). And it projects that we will still be at 7.5-8% unemployment in 2013.
And yet the Fed does next-to-nothing.
I thought we wanted rules, not discretion, in monetary policy? Or is the rule just "the Fed will step in to avert disaster, but not to deliver meaningful growth".
Smart post admin
ReplyDeleteI hope to visit my blog and subscribe to me :)
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