Comments: Polls apart, Germany is on top

Germany has a real choice - the future or rhetoric. My guess that rhetoric will prevail. Germans lost their courage to look at the world as it is a long time ago. Anti-American attitudes mererly reflect the bitterness of a souless nation that prefers comfort to challenge.

Posted by anne at September 18, 2005 03:21 PM

Blimey, what a message of depression. Call for Social Services! Ah, but of course that won’t actually help because the Blair/Brown social model doesn’t work – and neither do their ineffectual manufacturing, energy, housing and pensions models.

At least the German social model did work when it was needed and now there is an acceptance, by the main parties at least, that things have to change. The current negotiations are about power, not policy.

Btw, Germany did see the Iraq invasion for what it was. And the German people did prefer to challenge George Bush - because, as all like-minded people will tell you, they were anti-Bush, not anti-American.

Posted by David Sandiford at September 19, 2005 12:23 PM

From the Sept. MPC minutes:

“11 The Committee could choose to accommodate the first-round impact of higher oil prices and allow headline CPI inflation to rise temporarily above the target. If wage settlements did not pick up in line with the increase in CPI inflation, this would reduce the growth of real consumption wages. But this accommodative strategy could prompt an increase in agents’ inflation expectations and an associated rise in wage settlements. If this were to occur, the tightening in monetary policy needed to bring inflation back to target might be associated with larger fluctuations in output and employment.

12 Alternatively, monetary policy could respond to the first-round effects of the oil price shock and seek to bring CPI inflation back to target more quickly, thereby limiting any change in agents’ inflation expectations. This would imply a tighter monetary policy in order to reduce inflation in the non-oil sector, offsetting the direct effects arising from higher oil prices. This would push down on growth and employment, reducing the growth in real consumption wages through lower wage settlements.”

Quite. It’s interesting how explicit they are in linking inflation to wage rises and the control of inflation to increasing unemployment – i.e., unemployment brought about by monetary policy.

Posted by David Sandiford at September 21, 2005 10:53 AM

The future for Germany as well as the rest of EU is closely linked with the US I think. regards

Posted by bil at December 13, 2005 04:51 AM

No, I will have to disagree Bill. Why do you think so?

Posted by Leie Tilhenger at January 13, 2008 01:41 AM