Wednesday, December 17, 2008

Why Drezner Is Worried

A smart post from Dan Drezner listing reasons to worry about the inadequacy of the current response to global crisis. Key points as far as Europe is concerned:

1. "The Europeans and Asians, meanwhile, are unbelievably complacent."
2. "A restriction of global trade is not going to happen through traditional means, like high tariffs. It’s going to happen through domestic content rules on any fiscal programmes and on currency manipulation."

3 comments:

bernard said...

Dan Drezner is surely right to be concerned about currency manipulation with the EUR at 1.4309 to the USD, ie. some 20% overvalued, but it may be coming from closer to home than he might wish to acknowledge. ZIRP does have consequences, you see...

Arthur Goldhammer said...

Now, now, Bernard, you know perfectly well that Trichet can start dropping money from helicopters anytime he wants. ZIRP sounds better in French anyway.

Anonymous said...

^^ nice blog!! ^@^

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