Y, como complemento... GARICANO, ¿Comprendes bien a Merkel?

La respuesta de Alemania a Martín Wolf sobre el tema... Y la ejemplar réplica se éste. La carta del funcionario alemán demuestra la carga moralista y justiciera que hay en la soberbia alemana. Que les den. Ojalá se rompa el euro por nuestro bien.

http://blogs.ft.com/martin-wolf-exchange/2012/06/07/the-german-response/#ixzz1xEDQ8BBo

Sir, Martin Wolf (“The riddle of German self-interest”, May 30) voices a fundamental critique of the European fiscal and economic policy strategy in the context of the current debt crisis. He argues that the “eurozone is now on a journey towards break-up that Germany shows little will to alter” given its many “neins” to anything that would break the “doom loop”.

Mr Wolf’s solution for the current problems is risk transfer via eurobonds (of some sort), and demand stimulation via cheaper money and less fiscal consolidation in Germany. But the public and markets have been led to believe in short-term measures for far too long. And they know there is too much moral hazard already. Eurobonds would only make it worse and the healthier countries − mainly Germany and France − cannot even afford them.

Comment: At least three points are worth making here.

First, the aim is not risk transfer, but rather substantially to reduce the problems members of the currency union now have in retaining liquidity in their sovereign bond markets. Mr Schuknecht argues that such multiple equilibria are impossible. There is good reason to believe he is wrong, as the Belgian economist, Paul de Grauwe has written. I discussed this issue at length here

Second, I do not know what “short-term measures”, Mr Schuknecht is referring to. But the public presumably expects the eurozone at least to hit its inflation target. At present, there is good reason to doubt that it will.

Third, “moral hazard” is not the clincher Mr Schuknecht believes it is. We have fire brigades, despite moral hazard, because it is bad for the neighbourhood for a house to burn down. Nobody enjoys the experience of watching his house – or in this case, his economy – burn down. The idea that offering countries a cap on borrowing costs would encourage them to repeat the current experience is, to put it mildly, implausible. Governments really do dislike having 25 per cent unemployment rates (as in Spain today). The penalty is sufficient to discourage repetition.

PS: GARICANO, ¿Comprendes bien a Merkel, o necesitas aclaraciones en barbacoas exóticas?

Krugman, aqui, riene un sabroso comentario.