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Posted at 9:30 AM ET, 12/ 2/2010

When you've lost Barry Eichengreen ...

By Ezra Klein

I really worry when Barry Eichengreen -- perhaps America's most knowledgeable economist when it comes to E.U.-related issues -- begins saying things like this:

The Irish “rescue package” finalized over the weekend is a disaster. You can say one thing for the European Commission, the ECB and the German government: they never miss an opportunity to make things worse.

It pains me to say this. I’m probably the most pro-euro economist on my side of the Atlantic. Not because I think the euro area is the perfect monetary union, but because I have always thought that a Europe of scores of national currencies would be even less stable. I’m also a believer in the larger European project. But given this abject failure of European and German leadership, I am going to have to rethink my position.

There's much more at the link, and it gets more, not less, depressing.

By Ezra Klein  | December 2, 2010; 9:30 AM ET
 
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Comments

"I’m also a believer in the larger European project. But given this abject failure of European and German leadership, I am going to have to rethink my position."


What a ridiculous statement! The German ARE leading. They're leading to protect their own economy, and their own banks. Did you REALLY think that Germany would put the interests of the PIGS ahead of their own, or even that the French would?

Also Ezra, just because you took an econ class with someone at Berekley does not make them "perhaps America's most knowledgeable economist when it comes to E.U.-related issues".

That's just crazy thinking! That shows how little you understand about currency and debt. Do you REALLY think that even though Wall Street firms trade billions in euro currency and debt every day, that they employ economists who are somehow inferior to this guy???????

Take just one firm PIMCO for instance. They are the world's largest bond fund with offices in New York, London, Hong Kong, Tokyo, Munich, Zurich, Amsterdam, Toronto, Singapore, and Sydney. They are led by two brilliant investors, Bill Gross and Mohamed El-Erian, an economist trained at Oxford, who previously headed Harvard's investment fund, among other things. Think either of them might be a little mmore clued in than your old professor?

The euro has been falling versus the dollar for over a year now (with occasional reversals). This, at a time when the Fed has been trying to think of new ways to tamp the dollar down the whole time.

Currency and debt are about one thing . . . faith. For the last year, people have been losing faith in the Euro (and the British are too polite to crow about not joining)

I could go and on, but suffice to say once again, you embarass yourself because your sources are always some unviersity professor, or some other blogger.

I despair of your learning curve!

Posted by: 54465446 | December 2, 2010 10:49 AM | Report abuse

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