Saturday, December 13, 2008

Why France and Germany Disagree

At Telos, an article examining the deeper sources of Chancellor Angela Merkel's attitudes toward the financial crisis. Keynes has not made a comeback in Germany, argues Philipe Ward, where the great financial disaster of the 20th century was not the Depression of the '30s but the hyperinflation of the '20s. The watchwords there äre not "stimulus" and "demand," he contends, but "ordo-liberalism," "social market economy," and "regulation."

On the other hand, we have the Süddeutsche Zeitung opining that the U.S. Republican vote against the auto bailout marks a return to "Hoover time." Go figure.

And now Le Monde is reporting that Merkel is planning a 30 billion euro stimulus package to be announced in January. Go figure again.