Friday, March 4, 2011

Krugman Blasts Trichet


So what the ECB is saying, in effect, is that Europe should drive down nominal wages — which can only be done by raising the unemployment rate — in order to offset the effect of oil and food on headline inflation. (Real wages will fall in any case.)
Is this really a policy that the ECB would defend in so many words? I doubt it. But however sober and dignified talk of price stability may sound, that’s what the proposed policy amounts to.

Damn the Torpedoes, Full Speed Astern!

Apart from wanting to use this great picture, I thought you might find this summary of Sarkozy's recent retreats of interest.

Diplomatic Whistleblowers

Bernard Girard on diplomats fighting back against derision by the president and his inner circle.


Arnaud Montebourg is an ambitious man. A serious presidential run is still a way off, but he's young. He's also willing to stick his neck out: witness his report on corruption in the Socialist federation of Bouches-du-Rhône under Baron Jean-Noël Guérini. Yet the party leadership continues to defend its baron. Montebourg may suffer in the short run, but in the long run perhaps he'll get some credit for daring.