Brendan Keenan: Devaluation is no miracle cure
The difference in inflation rates with Britain shows us a sudden drop in value of money has no real benefits
Published 03/07/2011 | 05:00
ONE thing you can say about the present generation of EU leaders: they have united Europe as never before. From left to right, from top to bottom, from professors to the man on the 46A; everyone agrees: they are making a mess of things.
Eurozone policy has even united the warring tribe of economists. A dramatic five-point plan put forward by the avowedly socialist Professor Terrence McDonough of NUI Galway is really not much different from that of the right wing! Well, like the Lord High Executioner in the Mikado operetta, draw up your own list.
More remarkably, Prof McDonough finds himself rubbing shoulders with the governor of the Bank of England, Mervyn King. In his bank's financial stability report, King took the remarkable step of saying openly that eurozone policies were not credible.