Comments on economics, mystery fiction, drama, and art.

Monday, October 24, 2011

The new European Gold Standard

Seems to be having consequences very much like the old European Gold Standard, according to Paul Krugman:

"The story of postwar Europe is deeply inspiring. Out of the ruins of war, Europeans built a system of peace and democracy, constructing along the way societies that, while imperfect — what society isn’t? — are arguably the most decent in human history.

"Yet that achievement is under threat because the European elite, in its arrogance, locked the Continent into a monetary system that recreated the rigidities of the gold standard, and — like the gold standard in the 1930s — has turned into a deadly trap."


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