Ambrose Evans-Pritchard at the Telegraph says the doves have seized the European Central Bank and are ready to print. He cites yesterday’s comments from Peter Praet and the frustration they have caused in Germany.
The nub of the matter is that any policy set at this stage for Club Med needs is destructive for Germany, and any policy set for German needs is destructive for Club Med. You cannot set a workable policy. The intra-EMU gap is already too wide.
He also gets off a good line about the German obsession with inflation.
I don’t wish to join Romano Prodi in denouncing the Germans for being as obsessed with inflation as teenagers are obsessed with sex.
His solution to the turmoil is for Germany to ‘politely withdraw from the euro.’
