Thursday, June 28, 2012

Greeks Should Have Seen This Coming - in 1992


Wynne Godley nailed it, way back then.

"The central idea of the Maastricht Treaty is that the EC countries should move towards an economic and monetary union, with a single currency managed by an independent central bank. But how is the rest of economic policy to be run? As the treaty proposes no new institutions other than a European bank, its sponsors must suppose that nothing more is needed. But this could only be correct if modern economies were self-adjusting systems that didn’t need any management at all."

(Hat tip to EconomicsNewZealand ‏@economicsNZ)

An uninformed population and it's options are soon parted?


2 comments:

G_remy said...

And from 1997:
http://www.concertedaction.com/2011/11/07/curried-emu/

Detroit Dan said...

Duly Evernoted! Can't wait to spring this in a discussion. Thanks!