The next trilateral summit should be held in Poland in 2008 It providers to access to the Internet to do soSome appeared us particularly sémillantesonly for the damage caused to other road usersThe path that is both realistic and courageousBut the Government cannot claim victory so farFinally the restrictive and protective legal regime already defined by articles lWe do not want the Government to assume all risksSide also transport network should investThe risk management gauge also qualitativelyFinished the flonflons place out of the crisis plans. If policies, few main economically during this campaign, that nous we say the experts, what it is called "prescribers of opinion" and other "big heads" East Coast
The dominant tone is clear: in Europe, we say, you speak against the risk of depression. Here, in America, we are talking about now, flatly, "reflation".
This did not come immediately. And could have the impression, for a time, that the efforts of Gordon Brown and Nicolas Sarkozy had led Europe to engage in a more reactive than the America policy: the European side, it was decided to intervene directly in the capital of banks, the American side, it was limited to clean up balance sheets. That is therefore changed in the past few weeks
First, the Fed and Treasury are arranged to the idea of a certain amount of recapitalisation. Then, and especially, the dominant concern is passed brutally finance to the real economy. Factories, shops, transportation and the vast services sector are one and the other seriously affected, and the spiral occurs much more rapidly than expected. Result: all the conversations, all the studies now revolve around the urgency of a new "stimulus" tax, which will of course become the priority of the new President. Motivational theme: Save "Main Street". And, the Americans found a distinct advantage over Europe. All the experts explained you to satiety: this is basis for the great "think tanks" Economist, such as the Brookings or the American Enterprise Institute and the National Association for Business Economics.
Why this quiet assurance on the ability of America to groom the pawn in the stimulus Because the crisis is a great developer; and she reminds of the evidence too soon forgotten: starting with the advantage of having a single Government, when Europe's fencing to find compromises between fifteen governments. Even 27!
As long as it's finance, can achieve some harmonization (to begin with interest rates); When it comes to industrial policy, it is any different. Europe of the plants has certainly progressed, but intra-European competition remains, and production conditions, tax and social charges, and industrial organizations differ from one country to another. As to the mobility of the workforce, it is not for tomorrow or even tomorrow. To make short, say that Volkswagen does not necessarily see the problems of the automobile as Renault or Fiat. The Ministers also...
Translation in academic terms: Europe is far away, despite the efforts of the last fifteen years, to be "optimal monetary zone" within the meaning of the Nobel Laureate Robert Mundell: had somewhat forgotten it, the crisis is for the recall.
It appears the old Continent, seen from across the Atlantic. Isn't this a little summary No doubt. But how deny that America is already in "pole position" Fashion is stimulating measures catalogues. The most complete orders is the Brookings, published under the signature of Martin Bailey. Support for housing construction by spread of loans over thirty years (at reduced rate), expansion of unemployment insurance, aid to States and cities for the development of infrastructure, there are for everyone... and for $ 200 billion in the first phase, with perhaps an extension of 100 billion if the unemployment rate came to exceed 7.5 (as is likely).
Talk about major works is significant: how not to make the approximation with the policy of the 1930s
It will tell us that the Brookings Institution, who displayed a sensitivity of left is not America. But that is the American Enterprise Institute (AEI), considered close to the business community, takes a similar language. By Desmond Lachman, one of the stars of this Institute economists should stop the decline in housing prices, recapitalize banks, spend the new tax stimulus with infrastructure, maintain an accommodative monetary policy.
(Falsely) naive question, raised several times by the French-American economist Paul Horne: where will the money be John Makin, columnist deemed the AEI, is bluntly: "the least bad solution for the Fed, is the monetary creation." "Printing money", it means, clearly, "reflation". And the most direct way!
Second impertinent question: what about the risk of inflation Response of washingtoniens circles: low conditions considerably moderate risk. And a pod of inflation will be less social damage as a deep depression.
In its budget deficit, current account, to the external debt, no one denies the need to treat them, but... especially not now! Shall explain in clear terms what the Americans think strongly without saying: superpuissante (at least for the moment) and issuing the international currency, America retains the advantage of the free decision.
This is not really new. Diagnosis of Jacques Rueff, old of fifty years, does not have a ride.
