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Friday, December 02, 2005

Comments

eurocent

well, in Spain we have 3.4% inflation, and almost 4% in regions like Barcelona. We have gone wildly into debt to buy houses at Californian prices with our Spanish salaries (which are 60% smaller).
While Spain might need this tightening (and more) it is true that Germany and France already have too many problems.

Claus Vistesen

"While Spain might need this tightening (and more) it is true that Germany and France already have too many problems."

This is the real problem for Trichet and the ECB in my opinion. Adjusting a quarter procent to meet a monetary target of 2% inflation for the whole Eurozone is very abitrary when we take into account the condition of the indivdual economies - what about a growth target?


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