My Cynicism in Writing About the Eurocrisis

Bundesbank urges ECB to keep within remit – FT.com.

My belief has been that the Bundesbank is merely playing “bad cop” to the ECB’s “good cop” during this crisis. Then I read an article like this.

We tend to think of large organizations cynically, and we should. Always remember that the large organization consists of people. These people actually believe in the organization’s principles.

While Merkel may be playing bad cop with the PIIGs, it seems to me that the Bundesbank leaders fervently believe in a stable euro above all else. This makes sense, because Germany underwent a ruinous hyperinflation.

Hyperinflation is the death of the currency. When the mark died in the 20’s, it ushered in political instability and extremism that led to Hitler. Can you see why the Bundesbank will never change its mind about this?

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s