Reform alone is no solution for the eurozone – Martin Wolf –

This is one of the top trending articles in the FT at the moment. This article by Martin Wolf is strongly recommended for a read. Check it out!

via Reform alone is no solution for the eurozone –

Whilst there is nothing really new in this article, it summarizes the economic policy debate for Europe. The article concludes that Germany must change her views to save Europe. There are two options. Radical monetary policy, viz. QE on a large scale or fiscal demand stimulus.

It is unlikely that this article will seriously influence the German government, who have already ignored similar advice from the IMF.

Meanwhile, it is hard to imagine that France and Italy will continue to toe the line on the fiscal compact. But if these big countries flout the rules, it will be grossly unfair on smaller countries, like Greece, Spain, Portugal and Cyprus.


Osborne has now been proved wrong on austerity – Martin Wolf

Dr Alf's Blog

This is an excellent, MUST-READ article by leading financial journalist, Martin Wolf, writing in the FT.

via Osborne has now been proved wrong on austerity – Martin Wolf

The reality that the economic management of the UK under David Cameron  has been an omni-shambles must be sold to the masses ahead of the next election, in my view. Conservative Vs. Labour economic management will be the pivotal issue in the next election, in my judgement.

Because of excessive authority, most people, especially the middle and lower classes have suffered unnecessary financial hardship. The main beneficiaries under Osborne have been the very high earners and very seriously wealthy.

Let me turn this to an open question:

Why has the popular media not focused more on the unnecessary pain caused by Osborne’s excessive austerity?

Any thoughts?

DALIAN/CHINA, 12SEPT09 - Martin Wolf, Associat... DALIAN/CHINA, 12SEPT09 – Martin Wolf, Associate Editor and Chief Economics Commentator, The…

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