Friday, May 21, 2010
EU seeks tougher budget rules to win market trust
This shows you how the Europeans just don't get it. Already strict budget rules created this crisis as it limited the normal fiscal response of running deficits counter-cyclically to sustain output and employment.
Now, member nations of the EU, like Greece, can't pay their debts because their economies are weak and constrained.
So what do the Europeans do?
Make the budget rules even tighter than they were before!
Out of the frying pan and into the fire!!!