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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (36363)	5/29/2000 10:58:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 42523

<<It's going to be interesting!>> that much is certain. i agree that Germany has sacrificed something for the greater good...your theory that this was a kind of reverse takeover by the DM has some merit, especially since the Maastricht treaty tried to impose German-type discipline on the participants. unfortunately the ECB has not even a shred of the credibility the BuBa used to have. in any case, the main problem, namely how do you conduct a common monetary policy for countries that are at any particular point in time at a different stage of their respective economic cycles is essentially impossible to solve. in fact the fiscal rigidities imposed by Maastricht may in the end do more harm than good, as loosening fiscal policy to counteract an inappropriate level of interest rates is essentially out as a safety valve. otoh, without these rigid budgetary prescriptions the more profligate countries would probably show no restraint at all. imo the introduction of the Euro was premature from an economic PoV, but it had to be done quickly to seize the moment of political will that existed at the time. anyway, one thing is slowly but surely helping to establish it as a fairly typical post-industrial fiat currency: loads of Euro denominated debt have been and continue to be created.