Saturday, February 20, 2010
Fisherian Debt Deflation
With outliers such as Venezuela and Zimbabwe (I am still struggling with the IMF's decision to grant SDR rights to ZIM, as I said in a previous post, my intitial thought was a "combo-breaker" to China's ambitions in the region. However, there may be some long-term interest in Zimbabwe in particular since it is adjacent to the most stable country in Africa.) experiencing Weimar-style inflation, the rest of the world has the opposite problem.
The EU should seriously consider distributing several billion Euros to member states on an equal or per capita basis. They will not do this because of institutional memory (see that link above) and a misunderstanding of their monetary options.