Euro trash.Europe's proposed new currency, the Euro, passed another stage in its prolonged birth-pangs in early May with the announcement of the new head of the European Central Bank European Central Bank (ECB) Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, . It is being born not with a bang Not with a Bang was a short-lived British television sitcom produced by London Weekend Television in 1990. It ran for seven episodes, each 30 minutes long, before being cancelled due to poor ratings and a stagnant plot. but with a whimper. Under the Maastricht Treaty, the ECB See electronic code book. is headed by an independent central banker, beholden be·hold·en adj. Owing something, such as gratitude, to another; indebted. [Middle English biholden, past participle of biholden, to observe; see behold. to no national government, who serves for eight years. Since any inflationary errors in monetary policy would become manifest well within that time, this term of office is a real incentive to monetary prudence. The Netherlands' Wim Duisenberg, a formerly free-spending socialist who got the monetarist Monetarist An economist who holds the strong belief that the economy's performance is determined almost entirely by changes in the money supply. Notes: Milton Friedman was a well-known monetarist. religion a decade ago, was the candidate favored by everyone but the French. The Germans in particular wanted to ensure that the Euro would have the same strength and stability as their own adored Mark. Mr. Duisenberg was thought to be a shoe-in. But the French forced a compromise: Mr. Duisenberg will serve for a few years and then hand over his job to French central banker Jacques Trichet. This deal met with horrified hor·ri·fy tr.v. hor·ri·fied, hor·ri·fy·ing, hor·ri·fies 1. To cause to feel horror. See Synonyms at dismay. 2. To cause unpleasant surprise to; shock. jeers jeer v. jeered, jeer·ing, jeers v.intr. To speak or shout derisively; mock. v.tr. To abuse vocally; taunt: jeered the speaker off the stage. everywhere but France. Not all the derision is justified. The banking technocrats are in danger of making a fetish of the ECB's independence. Unlike our Federal Reserve Board, whose chairman must negotiate with the Administration and testify before Congress, Mr. Duisenberg boasts that he will ignore national governments, testify only to the feeble European "Parliament," and wait 16 years before revealing the ECB's internal discussions on interest rates, etc. Independence from day-to-day political control is one thing; complete immunity from democratic accountability is quite another--and one that would simply not survive either hyperinflation Hyperinflation Extremely rapid or out of control inflation. Notes: There is no precise numerical definition to hyperinflation. This is a situation where price increases are so out of control that the concept of inflation is meaningless. or a prolonged recession. Nevertheless, the deal gave the markets jitters jitters 'Butterflies' Psychology An episode of nervousness or anxiety that often precedes a public event; jitters is a type of performance anxiety which may affect actors in a stage production–stage fright or soloist musicians; it may respond to anxiolytics . They wanted a demonstration of the Bank's independence as a proxy for the Euro's status as a strong, stable currency. They got an apparent demonstration that France and Germany are at odds over monetary policy and that the French preference for growth (and inflation?) will still be pressed on the ECB after the Euro is a going concern. These fears will almost certainly persuade Duisenberg, Trichet, and their colleagues to err on the side of anti-inflationary caution. The Euro is therefore likely to begin life as a strong currency. The risks are in the long term. Countries like Spain, Portugal, Italy, and until recently France have long relied on inflationary policies to provide a short-term boost for highly regulated economics. Optimists believe that membership in the Euro zone will force these countries to make massive structural adjustments. That is like joining the army to be sure of getting up early--it may work, but it will hurt. Furthermore, the people of these countries see the Euro as a substitute for such adjustments. When the Euro fails to deliver, the ECB will face pressure to run a more accommodating monetary policy. And that will be the Euro's acid test. In short, joining the Euro is an economist's version of St. Augustine's famous prayer: "Lord, make me chaste--but not yet." It docs not inspire great faith. Don Juan Don Juan (dŏn wän, j  `ən, Span. dōn hwän), legendary profligate. on the Skids
Webb Hubbell, who feels up a cookie jar, Rolls over, also, when the cash is right, While "privilege," anathema to Ken Starr, Goes glimmering as Blumenthal turns white; With Monica jay-naked at the bar, The play becomes a tad less recondite. As for the secondary actors, many Look greener than the Injun on the penny. --W. H. VON DREELE |
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