US economy turning?

Dennis Robert Redmond dredmond at efn.org
Fri Jan 4 15:27:01 PST 2002


On Thu, 3 Jan 2002, Seth Ackerman wrote:


> But what if the dollar falls against the euro and it just ends up hurting
> European exporters and the ECB shrugs its shoulders? That seems the more
> likely outcome.

That's where fiscal policy comes in -- the EU will have to run big deficits to keep the wheels of commerce turning. The next big challenge for the Euroleft will be pushing for mongo Eurokeynesianism -- at least 3% of EU GDP should do the trick. The ECB won't like this, but to hell with what they like or don't like -- if they even *think* about raising rates any time soon, then Frankfurt '02 will make Gothenburg/Genoa '01 look like kindergarten recess.

-- Dennis



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