Less is More

Anatole Kaletsky has a serious piece in today’s London Times. (When was he ever not serious and who do I think I am to be critiquing him but….)

I agree with his view of the seriousness of the MittelEuropa problems but not with his therapeutic reccomendations. As for his assumption that the Germans might give up on their strongest national characteristic (no smart remark from the back of the class now..), he is wishmaking rather than delineating possible policy choices. The Germans will be minded to save more, not spend more, in this situation.

What bothers me most about this much celebrated economist and most of his colleagues prescriptions is this.

Why, if the problem is one of too much debt, does anyone think more debt can be the answer?